With a domestic leasehold property in Brigg, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Brigg with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When the lease term has below 80 years left, under the current legislation the landlord can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Brigg with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Brigg can be a difficult process. We recommend you obtain 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 in-depth market knowledge dealing with Brigg lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Stanley, came seriously close to the 80-year mark with the lease on his first floor flat in Brigg. Having bought his home 19 years ago, the unexpired term was of no bearing. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Stanley arranged for a lease extension at the eleventh hour in January. Stanley and the landlord in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £1,000.
Last Summer we were phoned by Mr Nathaniel Wright , who purchased a first floor apartment in Brigg in March 2003. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical properties in Brigg with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 invoiced yearly. The lease expiry date was on 13 April 2096. Considering the 70 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last month we were phoned by Mr and Mrs. B López , who purchased a ground floor apartment in Brigg in January 2006. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparative flats in Brigg with an extended lease were in the region of £246,800. The average ground rent payable was £60 collected monthly. The lease finished in 2076. Taking into account 50 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of professional charges.