When it comes to domestic leasehold premises in Broughton In Furness, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Residents in Broughton In Furness with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below eighty years left, under the relevant statute the landlord is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Broughton In Furness leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jack owned a high value flat in Broughton In Furness being marketed with a lease of a few days over 59 years unexpired. Jack on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Jack to invoke his statutory right. Jack procured expert advice and secured satisfactory resolution informally and readily saleable.
Dr Edward Cook moved into a one bedroom flat in Broughton In Furness in August 2001. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar premises in Broughton In Furness with a long lease were in the region of £233,200. The mid-range ground rent payable was £60 collected per annum. The lease elapsed in 2086. Considering the 61 years outstanding we approximated the premium to the landlord to extend the lease to be between £22,800 and £26,400 plus costs.
Last month we were phoned by Mr Alfie Lefebvre , who was assigned a lease of a one bedroom apartment in Broughton In Furness in July 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative residencies in Broughton In Furness with a long lease were in the region of £166,800. The average amount of ground rent was £50 invoiced every twelve months. The lease expired on 7 January 2075. Having 50 years left we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of costs.