Brigg residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold properties in Brigg with more than 100 years remaining 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
The conveyancers that we work with procure Brigg lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Jackson, started to get near to the 80-year mark with the lease on his first floor flat in Brigg. Having bought his property two decades ago, the lease term was of little interest. Thankfully, he recognised he needed to take action soon on Extending the lease. Jackson was able to extend his lease just under the wire in May. Jackson and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If the lease had slipped to less than eighty years, the sum would have become more costly by a minimum £1,100.
Mr and Mrs. H Edwards was assigned a lease of a basement apartment in Brigg in July 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in Brigg with a long lease were valued about £249,200. The average amount of ground rent was £60 collected per annum. The lease terminated in 2077. Considering the 51 years left we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including fees.
Mr A Bonnet took over the lease of a ground floor apartment in Brigg in June 2004. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable homes in Brigg with 100 year plus lease were worth £210,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease came to a finish on 7 August 2088. Taking into account 62 years left we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including professional charges.