Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Broughton In Furness. Inevitably, the length of lease left reduces over time. This is often overlooked and only becomes a problem when the residence needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Broughton In Furness have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Do give careful consideration before delaying your Broughton In Furness lease extension. Holding off the cost now likely increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Broughton In Furness with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with handle Broughton In Furness lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 9 months of protracted discussions with the freeholder of her ground floor flat in Broughton In Furness, Ellen started the lease extension process as the 80 year deadline was fast nearing. The lease extension was finalised in August 2006. The landlord’s fees were restricted to a tad over 700 GBP.
Last Spring we were phoned by Mr and Mrs. F Ali , who bought a one bedroom flat in Broughton In Furness in September 2007. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical homes in Broughton In Furness with 100 year plus lease were valued around £218,400. The mid-range amount of ground rent was £60 billed annually. The lease elapsed on 1 June 2085. Given that there were 59 years outstanding we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus costs.
Mr G Jackson completed a one bedroom apartment in Broughton In Furness in January 2006. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparative flats in Broughton In Furness with an extended lease were worth £205,000. The average amount of ground rent was £50 billed monthly. The lease came to a finish on 14 November 2105. Considering the 79 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.