It’s an underpublicised truth that a Bridlington residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Bridlington property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Bridlington will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Bridlington with in excess of 100 years left 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|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.
|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
The conveyancers that we work with procure Bridlington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Twenty four months ago Archie, came perilously near to the 80-year mark with the lease on his studio apartment in Bridlington. Having bought his property 19 years previously, the length of the lease was of minimal bearing. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Archie extended the lease at the eleventh hour last August. Archie and the freeholder via the management company eventually agreed on the final figure of £6,000 . If the lease had fallen to less than 80 years, the figure would have become more exhorbitant by a minimum £1,000.
In 2010 we were phoned by Mr and Mrs. C Moreau who, having owned a purpose-built apartment in Bridlington in January 2001. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar flats in Bridlington with a long lease were worth £248,000. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed in 2084. Taking into account 63 years unexpired we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus fees.
In 2009 we were e-mailed by Dr Luca Miller who, having took over the lease of a studio apartment in Bridlington in January 1998. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Similar properties in Bridlington with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 billed monthly. The lease termination date was on 9 July 2073. Taking into account 52 years as a residual term we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including legals.