It’s an underpublicised truth that a Bridlington residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Bridlington property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Bridlington will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Bridlington with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| 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. |
| 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. |
Using our service gives you increased control over the value of your Bridlington leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her basement apartment in Bridlington, Amber commenced the lease extension process as the 80 year deadline was fast advancing. The lease extension was finalised in July 2012. The freeholder’s charges were negotiated to less than 600 GBP.
Dr Logan Mercier purchased a newly refurbished flat in Bridlington in September 1999. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Bridlington with an extended lease were worth £275,000. The average ground rent payable was £45 collected monthly. The lease came to a finish in 2094. Given that there were 69 years outstanding we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
Dr Harry Rose owned a one bedroom apartment in Bridlington in November 2000. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Similar properties in Bridlington with a long lease were worth £216,000. The average ground rent payable was £60 invoiced quarterly. The lease terminated on 13 January 2083. Taking into account 58 years left we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.