Bridlington residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Bridlington,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bridlington valuers.
Trailing lengthy negotiations with the freeholder of her first floor flat in Bridlington, Louise started the lease extension process just as the lease was coming close to the all-important 80-year threshold. The transaction completed in September 2006. The landlord’s fees were kept to an absolute minimum.
Dr N Thomas owned a one bedroom flat in Bridlington in May 2004. The question was if we could estimate the price could be to extend the lease by 90 years. Similar homes in Bridlington with a long lease were in the region of £210,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease lapsed on 6 April 2106. Given that there were 80 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
In 2009 we were contacted by Dr A Petit who, having acquired a basement flat in Bridlington in March 1995. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable residencies in Bridlington with 100 year plus lease were in the region of £275,000. The average ground rent payable was £45 billed quarterly. The lease finished on 1 June 2095. Having 69 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.