Bridlington residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| Yorkshire Building Society | 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. |
Using our service will provide you increased control over the value of your Bridlington leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago George, came perilously near to the eighty-year mark with the lease on his ground floor flat in Bridlington. In buying his home two decades ago, the unexpired term was of no significance. Thankfully, he recognised he needed to take action soon on a lease extension. George was able to extend his lease just under the wire last June. George and the landlord in the end settled on the final figure of £6,000 . If the lease had dropped below 80 years, the sum would have become more exhorbitant by at least £1,100.
In 2012 we were approached by Mr and Mrs. I Martinez who, having bought a purpose-built apartment in Bridlington in September 2012. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Identical premises in Bridlington with an extended lease were worth £280,000. The average amount of ground rent was £45 collected every twelve months. The lease concluded in 2096. Having 70 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.
In 2011 we were phoned by Mr and Mrs. D Roberts who, having took over the lease of a studio apartment in Bridlington in May 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar properties in Bridlington with an extended lease were in the region of £223,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease lapsed in 2085. Taking into account 59 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 not including professional charges.