The market value of a leasehold property in Brixham is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded ahead of the eighty year threshold. Leasehold Reform legislation entitles Brixham qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Brixham with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Brixham leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Henry, came seriously close to the 80-year mark with the lease on his two bedroom apartment in Brixham. Having purchased his home twenty years previously, the unexpired term was of no bearing. Thankfully, he realised he would imminently be paying an escalated premium for Extending the lease. Henry extended the lease at the eleventh hour last September. Henry and the freeholder in the end settled on sum of £6,000 . If the lease had descended lower than 80 years, the amount would have become more exhorbitant by a minimum £1,075.
Dr Daniel Young owned a basement apartment in Brixham in November 2007. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar premises in Brixham with a long lease were worth £210,600. The average ground rent payable was £45 invoiced annually. The lease elapsed in 2088. Having 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.
In 2011 we were e-mailed by Dr D Bertrand who, having moved into a one bedroom apartment in Brixham in February 2012. The dilemma was if we could estimate the price would be to extend the lease by ninety years. Comparative properties in Brixham with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 billed monthly. The lease ran out on 27 September 2099. Having 73 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.