As the the remaining lease term of a Brighouse and Rastrick residential lease decreases so does its value and therefore the value of your property. If the lease has, more than one hundred years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner than later. Most flat owners in Brighouse and Rastrick will meet the qualifying criteria; that being said a conveyancer will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Brighouse and Rastrick with in excess of one hundred years left 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Brighouse and Rastrick leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Stanley, came very near to the 80-year threshold with the lease on his studio apartment in Brighouse and Rastrick. Having purchased his property twenty years ago, the unexpired term was of little concern. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. Stanley was able to extend his lease just in the nick of time in January. Stanley and the landlord who owned the flat above eventually agreed on an amount of £5,500 . If the lease had dipped below eighty years, the sum would have gone up by at least £1,150.
Last year we were phoned by Ms Jennifer Rose , who moved into a garden flat in Brighouse and Rastrick in October 2010. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable flats in Brighouse and Rastrick with a long lease were worth £168,800. The average ground rent payable was £60 invoiced per annum. The lease ended in 2081. Taking into account 55 years unexpired we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus costs.
In 2014 we were e-mailed by Mr Blake Jackson who, having was assigned a lease of a purpose-built flat in Brighouse and Rastrick in July 1999. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable premises in Brighouse and Rastrick with a long lease were worth £235,200. The average ground rent payable was £45 invoiced per annum. The lease concluded on 19 June 2092. Taking into account 66 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.