Bridlington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Bridlington residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bridlington you should investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Bridlington leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Bridlington valuers.
Last October James, came perilously near to the 80-year threshold with the lease on his one bedroom flat in Bridlington. Having purchased his home 18 years ago, the unexpired term was of no significance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. James extended the lease just ahead of time in June. James and the landlord eventually agreed on sum of £5,500 . If he had missed the deadline, the amount would have increased by at least £1,075.
Ms F Laurent purchased a basement apartment in Bridlington in February 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative premises in Bridlington with 100 year plus lease were valued around £216,000. The average ground rent payable was £60 collected per annum. The lease end date was on 11 April 2083. Considering the 58 years remaining we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.
In 2010 we were approached by Dr Ryan Gray who, having took over the lease of a one bedroom flat in Bridlington in August 2009. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Bridlington with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed quarterly. The lease terminated in 2103. Taking into account 78 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.