Brighouse leases on residential properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher amount will be payable. Flat owners in Brighouse will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Brighouse with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Brighouse 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.
Half a year ago Dexter, came dangerously close to the 80-year threshold with the lease on his garden flat in Brighouse. Having purchased his property 18 years previously, the length of the lease was of little importance. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Dexter arranged for a lease extension at the eleventh hour in March. Dexter and the freeholder via the management company eventually settled on a premium of £5,000 . If the lease had dipped below 80 years, the price would have escalated by at least £1,125.
Last June we were called by Mr and Mrs. J Lefèvre , who completed a purpose-built apartment in Brighouse in September 2003. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable residencies in Brighouse with a long lease were in the region of £233,200. The average ground rent payable was £60 billed quarterly. The lease ended on 7 September 2086. Having 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including costs.
In 2013 we were contacted by Mrs V Clark who, having completed a purpose-built apartment in Brighouse in September 2012. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Similar residencies in Brighouse with 100 year plus lease were in the region of £166,800. The average amount of ground rent was £55 billed annually. The lease concluded in 2075. Having 50 years remaining we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including professional charges.