On the balance of probabilities where you own a flat in Brighouse you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
The conveyancers that we work with undertake 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 conveyancer we work with provide it.
Off the back of unsuccessful discussions with the landlord of her first floor flat in Brighouse, Eleanor commenced the lease extension process just as her lease was coming close to the crucial eighty-year mark. The transaction was concluded in June 2014. The landlord’s fees were negotiated to about 550 GBP.
Last Summer we were e-mailed by Mr and Mrs. F Johnson , who bought a studio apartment in Brighouse in May 2011. The question was if we could approximate the premium could be for a 90 year lease extension. Similar premises in Brighouse with 100 year plus lease were worth £191,400. The average ground rent payable was £55 collected yearly. The lease came to a finish in 2078. Taking into account 54 years remaining we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 plus expenses.
Mrs B Dupont was assigned a lease of a one bedroom flat in Brighouse in March 2005. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Similar properties in Brighouse with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease termination date was on 17 November 2098. Considering the 74 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.