When it comes to residential leasehold premises in Brixham, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension 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 80 years remaining. Leasehold owners in Brixham with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. Once a lease has under eighty years left, under the relevant Act the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Brixham with over 100 years outstanding 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Brixham can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience 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.
Isaac was the the leasehold proprietor of a 2 bedroom apartment in Brixham on the market with a lease of a little over 72 years left. Isaac on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Isaac to exercise his statutory right. Isaac procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last month we were approach by Mr P André , who completed a ground floor flat in Brixham in April 2006. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Brixham with an extended lease were in the region of £265,000. The average ground rent payable was £50 collected yearly. The lease terminated on 26 March 2099. Taking into account 73 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
Mr and Mrs. Y David completed a purpose-built flat in Brixham in October 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Brixham with a long lease were valued about £264,000. The average amount of ground rent was £60 invoiced per annum. The lease ran out in 2079. Considering the 53 years left we estimated the premium to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of professional charges.