Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Bridlington. Inevitably, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Bridlington have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give due attention before delaying your Bridlington lease extension. Holding off the cost now likely increases the price you will eventually incur to extend your lease
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaing from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Lease extensions in Bridlington can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 in-depth market knowledge procuring Bridlington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Elijah owned a conversion flat in Bridlington being sold with a lease of a little over 72 years left. Elijah informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
In 2011 we were contacted by Dr K Rivera who, having purchased a studio flat in Bridlington in July 1999. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparative properties in Bridlington with 100 year plus lease were valued about £210,000. The average amount of ground rent was £50 invoiced quarterly. The lease terminated on 20 May 2102. Having 80 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
Last Winter we were contacted by Mr A Khan , who purchased a purpose-built apartment in Bridlington in July 2008. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparative residencies in Bridlington with an extended lease were valued about £280,000. The average ground rent payable was £45 invoiced quarterly. The lease expired on 21 November 2091. Considering the 69 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.