On the balance of probabilities if you own a flat in Bridlington you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Bridlington,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bridlington valuers.
Callum was the the leasehold owner of a conversion flat in Bridlington being sold with a lease of a few days over 72 years left. Callum informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last March we were called by Mr Leo Moore , who bought a one bedroom flat in Bridlington in June 1998. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Bridlington with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 billed monthly. The lease terminated in 2079. Considering the 54 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of legals.
Mr D Patel was assigned a lease of a purpose-built apartment in Bridlington in August 2004. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Identical homes in Bridlington with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease finished on 8 September 2099. Given that there were 74 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.