For those whose Broughton home is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.
Leasehold residencies in Broughton with more than 100 years left 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Broughton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Broughton valuers.
Trailing unsuccessful correspondence with the landlord of her one bedroom apartment in Broughton, Zoe started the lease extension process as the 80 year mark was quickly nearing. The legal work was finalised in April 2005. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were contacted by Dr Jake Collins who, having moved into a purpose-built flat in Broughton in May 1995. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Broughton with a long lease were valued around £233,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease lapsed in 2086. Given that there were 61 years as a residual term we estimated the premium to the landlord for the lease extension to be between £22,800 and £26,400 plus costs.
Last month we were e-mailed by Mrs L García , who completed a garden apartment in Broughton in April 2001. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Similar flats in Broughton with 100 year plus lease were valued about £171,800. The average ground rent payable was £55 billed quarterly. The lease finished in 2075. Having 50 years left we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of professional charges.