Chances are that if you own a flat in Brixham you actually own a long leasehold interest over your property
Leasehold properties in Brixham with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors 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 lawyer we work with provide it.
Subsequent to unsuccessful correspondence with the landlord of her garden flat in Brixham, Caitlin initiated the lease extension process just as the lease was coming close to the crucial 80-year threshold. The transaction was concluded in November 2008. The landlord’s costs were negotiated to approximately 700 pounds.
Last Spring we were called by Dr A Michel , who took over the lease of a garden flat in Brixham in April 2001. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable homes in Brixham with a long lease were valued about £176,200. The mid-range ground rent payable was £65 invoiced per annum. The lease expired in 2082. Taking into account 56 years left we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including fees.
Last Winter we were contacted by Dr G Harris , who purchased a one bedroom flat in Brixham in March 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Similar homes in Brixham with an extended lease were valued about £242,600. The average ground rent payable was £45 billed quarterly. The lease termination date was in 2093. Taking into account 67 years left we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including professional charges.