Broxbourne leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Broxbourne enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Broxbourne you should see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Broxbourne,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Broxbourne valuers.
18 months ago Edward, started to get close to the 80-year mark with the lease on his first floor flat in Broxbourne. Having bought his property two decades ago, the unexpired term was of minimal bearing. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Edward arranged for a lease extension just ahead of time in April. Edward and the landlord ultimately settled on an amount of £6,000 . If the lease had slipped below eighty years, the figure would have escalated by a minimum £925.
Dr T David moved into a purpose-built apartment in Broxbourne in February 2004. We are asked if we could estimate the price could be for a ninety year extension to my lease. Similar residencies in Broxbourne with an extended lease were in the region of £264,000. The average ground rent payable was £60 invoiced per annum. The lease expired in 2078. Taking into account 53 years unexpired we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including fees.
Last Autumn we were called by Dr D Clark , who owned a garden apartment in Broxbourne in November 1996. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical homes in Broxbourne with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 invoiced monthly. The lease elapsed on 1 February 2089. Taking into account 64 years unexpired we calculated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including costs.