As the length of the unexpired term of a Brigg domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, over 99 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Brigg will qualify for this right; that being said a lawyer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Brigg with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Brigg,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 Brigg valuers.
Following unsuccessful negotiations with the landlord of her studio apartment in Brigg, Erin initiated the lease extension process as the 80 year threshold was swiftly coming. The legal work completed in September 2014. The freeholder’s costs were kept to an absolute minimum.
Mrs Danielle Hall was assigned a lease of a first floor flat in Brigg in August 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Identical flats in Brigg with a long lease were in the region of £237,600. The average amount of ground rent was £45 collected annually. The lease elapsed on 16 October 2092. Given that there were 67 years outstanding we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus costs.
Mr A Michel purchased a first floor flat in Brigg in January 2008. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Identical flats in Brigg with an extended lease were worth £280,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease lapsed in 2103. Considering the 78 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.