It’s an underpublicised truth that a Broughton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Broughton property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term dips under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Broughton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Broughton with over 100 years outstanding 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Santander |
Regardless of whether you are a tenant or a landlord in Broughton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Broughton valuers.
After protracted negotiations with the freeholder of her leasehold apartment in Broughton, Laura commenced the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The transaction was finalised in April 2013. The landlord’s charges were negotiated to slightly above 500 GBP.
Dr H Thomas took over the lease of a purpose-built apartment in Broughton in October 2009. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Broughton with an extended lease were valued around £206,200. The average ground rent payable was £60 collected annually. The lease concluded on 2 May 2082. Considering the 56 years unexpired we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.
In 2014 we were phoned by Mr Jack Jackson who, having completed a one bedroom flat in Broughton in January 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Broughton with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease ran out in 2102. Considering the 76 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.