Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Broxbourne. Inevitably, the term of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Broxbourne have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Please give careful deliberation before delaying your Broxbourne lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Broxbourne can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Broxbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful correspondence with the freeholder of her leasehold flat in Broxbourne, Sophia initiated the lease extension process as the 80 year threshold was swiftly coming. The legal work was concluded in May 2005. The freeholder’s fees were restricted to a tad over four hundred pounds.
Dr N Lewis was assigned a lease of a garden apartment in Broxbourne in May 2001. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical homes in Broxbourne with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 invoiced per annum. The lease ran out on 18 May 2100. Considering the 74 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
In 2011 we were contacted by Mr and Mrs. O Laurent who, having moved into a ground floor flat in Broxbourne in August 2008. The question was if we could estimate the price could be for a ninety year lease extension. Comparable flats in Broxbourne with a long lease were valued about £166,400. The mid-range amount of ground rent was £60 collected monthly. The lease ran out in 2080. Given that there were 54 years remaining we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus professional charges.