When it comes to residential leasehold premises in Bridlington, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are less than 80 years remaining. Anyone in Bridlington with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has fewer than eighty years remaining, under the relevant statute the freeholder can calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Bridlington leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
William owned a 2 bedroom flat in Bridlington on the market with a lease of fraction over sixty years unexpired. William informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were William to exercise his statutory right. William obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last September we were called by Mrs Emily Reed , who took over the lease of a one bedroom apartment in Bridlington in January 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical flats in Bridlington with an extended lease were in the region of £240,600. The average amount of ground rent was £60 invoiced yearly. The lease lapsed in 2088. Taking into account 62 years as a residual term we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of costs.
Mr E King completed a one bedroom flat in Bridlington in June 1996. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical residencies in Bridlington with 100 year plus lease were in the region of £174,200. The mid-range ground rent payable was £55 billed quarterly. The lease expiry date was in 2077. Given that there were 51 years left we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of expenses.