Bridlington leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Bridlington will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Bridlington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Mason owned a high value flat in Bridlington being sold with a lease of a few days over sixty years left. Mason on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr C Campbell owned a one bedroom flat in Bridlington in April 1995. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable residencies in Bridlington with an extended lease were worth £166,800. The average ground rent payable was £50 invoiced yearly. The lease ended in 2075. Given that there were 50 years left we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus costs.
Last Christmas we were phoned by Mr and Mrs. H Petit , who moved into a purpose-built flat in Bridlington in November 1998. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative homes in Bridlington with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected yearly. The lease expired in 2095. Given that there were 70 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.