Broxbourne leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Broxbourne will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
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 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Broxbourne,the lease extension experts 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 Broxbourne valuers.
Following lengthy discussions with the freeholder of her leasehold flat in Broxbourne, Ellen initiated the lease extension process as the eighty year deadline was rapidly nearing. The lease extension completed in August 2015. The landlord’s fees were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. E Carter who, having took over the lease of a ground floor apartment in Broxbourne in September 2004. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable premises in Broxbourne with a long lease were worth £200,800. The mid-range ground rent payable was £65 invoiced annually. The lease termination date was in 2085. Having 60 years left we estimated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus expenses.
Last Winter we were contacted by Ms F Mitchell , who owned a ground floor apartment in Broxbourne in June 2000. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative homes in Broxbourne with an extended lease were in the region of £260,000. The average amount of ground rent was £50 billed monthly. The lease termination date was on 14 May 2096. Given that there were 71 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.