It’s an underpublicised certainty that a Broxbourne residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Broxbourne property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Broxbourne will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Broxbourne with more than 100 years unexpired on the lease are sometimes referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| Santander | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
Using our service will provide you enhanced control over the value of your Broxbourne leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Rory owned a studio apartment in Broxbourne on the market with a lease of a little over 59 years outstanding. Rory on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Rory to invoke his statutory right. Rory procured expert advice and secured an acceptable resolution informally and sell the flat.
Last Summer we were approach by Mr T Bonnet , who was assigned a lease of a one bedroom apartment in Broxbourne in January 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Broxbourne with a long lease were worth £191,000. The mid-range ground rent payable was £65 invoiced per annum. The lease finished in 2084. Having 58 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of expenses.
Last May we were phoned by Mr and Mrs. P Jackson , who moved into a one bedroom flat in Broxbourne in March 2005. We are asked if we could estimate the premium could be to extend the lease by ninety years. Identical premises in Broxbourne with an extended lease were worth £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expiry date was in 2095. Taking into account 69 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.