When it comes to residential leasehold property in Broughton, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years left. Leasehold owners in Broughton with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. When a lease has fewer than eighty years outstanding, under the relevant Act the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Godiva Mortgages | 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 |
| Yorkshire Building Society | 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. |
Retaining our service will provide you enhanced control over the value of your Broughton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her basement flat in Broughton, Gemma initiated the lease extension process as the 80 year mark was quickly advancing. The transaction completed in September 2010. The freeholder’s charges were negotiated to less than 550 pounds.
Mr Dylan Allen completed a ground floor flat in Broughton in November 2007. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Broughton with 100 year plus lease were valued around £260,200. The mid-range amount of ground rent was £65 billed monthly. The lease concluded on 13 February 2091. Considering the 66 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including legals.
In 2013 we were contacted by Mr and Mrs. C Hernández who, having acquired a purpose-built flat in Broughton in June 1995. The question was if we could approximate the premium could be for a ninety year lease extension. Comparable properties in Broughton with a long lease were worth £198,800. The mid-range ground rent payable was £55 billed monthly. The lease finished in 2080. Considering the 55 years left we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.