Bridlington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Bridlington residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bridlington you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Bridlington with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bridlington can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Bridlington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Teddy, started to get near to the eighty-year threshold with the lease on his garden apartment in Bridlington. In buying his home two decades ago, the unexpired term was of little relevance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Teddy was able to extend his lease just under the wire last June. Teddy and the landlord ultimately agreed on a premium of £5,500 . If he not met the deadline, the amount would have increased by a minimum £1,025.
Last year we were e-mailed by Mrs Rachael Rogers , who took over the lease of a garden apartment in Bridlington in April 2002. The question was if we could estimate the price could be to extend the lease by ninety years. Similar residencies in Bridlington with a long lease were worth £260,200. The average ground rent payable was £65 collected yearly. The lease ended in 2092. Taking into account 66 years remaining we approximated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus professional charges.
Last month we were contacted by Mrs D Petit , who purchased a newly refurbished flat in Bridlington in July 2001. The question was if we could estimate the price would likely be to extend the lease by an additional years. Identical flats in Bridlington with a long lease were worth £198,800. The mid-range ground rent payable was £55 invoiced annually. The lease finished on 6 October 2081. Given that there were 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including fees.