When it comes to long leasehold property in Brixham, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Anyone in Brixham with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. When a lease has under 80 years outstanding, under the relevant statute the landlord can calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Brixham with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Brixham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brixham valuers.
In recent months Owen, came precariously near to the eighty-year mark with the lease on his leasehold apartment in Brixham. Having purchased his property 19 years ago, the unexpired term was of little relevance. Fortunately, he became aware that he needed to take action soon on Extending the lease. Owen arranged for a lease extension just under the wire last April. Owen and the freeholder ultimately settled on a premium of £5,500 . If the lease had slid below 80 years, the premium would have become more exhorbitant by a minimum £1,050.
In 2010 we were called by Mr H Gunderson who, having bought a first floor apartment in Brixham in April 2011. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable properties in Brixham with an extended lease were worth £255,000. The mid-range ground rent payable was £50 collected monthly. The lease terminated on 9 October 2095. Taking into account 70 years outstanding we calculated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 not including professional charges.
In 2014 we were e-mailed by Mr and Mrs. L Davis who, having bought a ground floor flat in Brixham in November 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Brixham with a long lease were in the region of £246,800. The average ground rent payable was £60 invoiced per annum. The lease lapsed on 9 September 2075. Given that there were 50 years remaining we calculated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of fees.