As the length of the unexpired term of a Broxbourne domestic lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. Many flat owners in Broxbourne will meet the qualifying criteria; however a conveyancer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Broxbourne with more than 100 years left on the lease are sometimes regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Broxbourne,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Broxbourne valuers.
During the course of the last few months William, came very near to the eighty-year threshold with the lease on his leasehold apartment in Broxbourne. Having bought his property two decades ago, the lease term was of minimal interest. by good luck, it dawned on him that he would imminently be paying way over the odds for a lease extension. William extended the lease just in the nick of time last June. William and the freeholder via the management company in the end agreed on an amount of £6,000 . If he not met the deadline, the amount would have escalated by at least £950.
Last Winter we were called by Mr and Mrs. P Carter , who acquired a studio apartment in Broxbourne in January 2007. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative residencies in Broxbourne with an extended lease were worth £255,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded in 2096. Considering the 70 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Ms I Alexander acquired a first floor flat in Broxbourne in September 2003. We are asked if we could approximate the price could be for a ninety year lease extension. Similar residencies in Broxbourne with 100 year plus lease were worth £246,800. The mid-range ground rent payable was £60 invoiced annually. The lease ended on 12 October 2076. Given that there were 50 years remaining we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including expenses.