As the the remaining lease term of a Brixham domestic lease diminished so does its value and therefore the value of your property. Where the lease has, over one hundred years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner than later. Many flat owners in Brixham will meet the qualifying criteria; nevertheless a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 handle Brixham 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.
In recent months Alexander, came perilously close to the eighty-year mark with the lease on his one bedroom apartment in Brixham. In buying his home two decades ago, the length of the lease was of little significance. Fortunately, he became aware that he would soon be paying way over the odds for Extending the lease. Alexander was able to extend his lease at the eleventh hour last May. Alexander and the freeholder via the management company subsequently agreed on an amount of £6,000 . If he had missed the deadline, the premium would have escalated by a minimum £850.
Last month we were e-mailed by Dr N Nguyen , who owned a studio apartment in Brixham in July 2010. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable residencies in Brixham with an extended lease were worth £208,200. The average amount of ground rent was £65 collected quarterly. The lease lapsed on 25 August 2087. Taking into account 61 years left we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including legals.
In 2009 we were e-mailed by Mr and Mrs. R Morris who, having was assigned a lease of a one bedroom flat in Brixham in November 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Brixham with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 billed monthly. The lease expired in 2098. Taking into account 72 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.