On the balance of probabilities if you own a flat in Brixham you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service will provide you better control over the value of your Brixham leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy correspondence with the freeholder of her first floor apartment in Brixham, Ellen initiated the lease extension process just as the lease was nearing the crucial eighty-year mark. The transaction was finalised in February 2013. The landlord’s costs were negotiated to less than 700 GBP.
Last Summer we were called by Dr Charlotte Smith , who bought a recently refurbished flat in Brixham in June 1996. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Identical premises in Brixham with a long lease were worth £176,200. The average amount of ground rent was £65 collected per annum. The lease finished in 2081. Considering the 56 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including fees.
In 2012 we were e-mailed by Dr Madeleine Bell who, having acquired a one bedroom apartment in Brixham in February 1997. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparative residencies in Brixham with 100 year plus lease were valued about £242,600. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed on 14 August 2092. Taking into account 67 years remaining we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus expenses.