With a long leasehold property in Bridlington, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years left. Residents in Bridlington with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below eighty years remaining, under the current statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Bridlington leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel was the the leasehold proprietor of a 2 bedroom flat in Bridlington on the market with a lease of fraction over 61 years left. Gabriel informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
In 2014 we were phoned by Dr Caleb Howard who, having owned a studio flat in Bridlington in September 1999. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Bridlington with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expired in 2101. Given that there were 75 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.
Last Christmas we were phoned by Mr and Mrs. P Roux , who took over the lease of a recently refurbished apartment in Bridlington in September 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Bridlington with an extended lease were in the region of £250,400. The average amount of ground rent was £65 collected every twelve months. The lease ran out on 27 November 2090. Having 64 years remaining we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus legals.