Brixham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Brixham residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Brixham you really ought to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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 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; |
| 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. |
| 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. |
Lease extensions in Brixham can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Brixham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the freeholder of her purpose-built flat in Brixham, Caitlin initiated the lease extension process just as the lease was coming close to the critical eighty-year deadline. The transaction completed in September 2013. The freeholder’s charges were kept to an absolute minimum.
Dr G Lambert was assigned a lease of a purpose-built apartment in Brixham in August 2004. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable residencies in Brixham with a long lease were valued around £183,600. The average ground rent payable was £65 invoiced quarterly. The lease ended in 2083. Taking into account 57 years outstanding we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
Mr and Mrs. O Hernández completed a studio apartment in Brixham in February 2000. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparable homes in Brixham with an extended lease were worth £245,000. The average amount of ground rent was £50 collected per annum. The lease ended in 2094. Having 68 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.