When it comes to long leasehold property in Brighouse and Rastrick, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are fewer than 80 years left. Anyone in Brighouse and Rastrick with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When a lease has fewer than eighty years left, under the relevant legislation the landlord can calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Brighouse and Rastrick with over one hundred 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Brighouse and Rastrick can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
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 a wealth of experience dealing with Brighouse and Rastrick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Liam was the the leasehold proprietor of a conversion apartment in Brighouse and Rastrick on the market with a lease of a little over 61 years outstanding. Liam informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Liam to invoke his statutory right. Liam obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Spring we were called by Ms E Wood , who owned a purpose-built flat in Brighouse and Rastrick in April 1998. The question was if we could approximate the price would likely be to extend the lease by 90 years. Similar residencies in Brighouse and Rastrick with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease expired on 22 November 2095. Considering the 70 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.
Mr and Mrs. V Wood purchased a one bedroom flat in Brighouse and Rastrick in May 1998. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Brighouse and Rastrick with a long lease were in the region of £246,800. The average ground rent payable was £60 billed monthly. The lease ended on 13 February 2075. Given that there were 50 years as a residual term we calculated the premium to the landlord to extend the lease to be between £44,700 and £51,600 not including costs.