As the the remaining lease term of a Brixham residential lease decreases so does its value and therefore the value of your property. Where the lease has, over 125 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Brixham will qualify for this right; nevertheless a conveyancer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Brixham with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Brixham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brixham valuers.
Off the back of unsuccessful discussions with the landlord of her ground floor apartment in Brixham, Charlotte started the lease extension process just as her lease was nearing the all-important 80-year mark. The lease extension was concluded in October 2007. The landlord’s charges were negotiated to a tad over five hundred GBP.
Last year we were e-mailed by Mrs J Patel , who purchased a one bedroom apartment in Brixham in June 2009. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Brixham with an extended lease were in the region of £280,000. The average ground rent payable was £55 invoiced per annum. The lease finished on 1 February 2103. Taking into account 78 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.
In 2013 we were called by Mr and Mrs. V Norbert who, having acquired a basement apartment in Brixham in January 1997. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable premises in Brixham with 100 year plus lease were valued around £191,000. The mid-range amount of ground rent was £65 collected yearly. The lease terminated in 2083. Given that there were 58 years left we approximated the premium to the landlord for the lease extension to be between £23,800 and £27,400 plus professional charges.