Brighouse residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| 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. |
Using our service gives you better control over the value of your Brighouse leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Ibrahim, started to get near to the 80-year mark with the lease on his leasehold flat in Brighouse. Having purchased his flat 18 years ago, the unexpired term was of no bearing. Fortunately, he realised he needed to take steps soon on Extending the lease. Ibrahim extended the lease just under the wire last May. Ibrahim and the landlord ultimately settled on sum of £5,000 . If the lease had descended to less than eighty years, the sum would have gone up by at least £1,100.
Last month we were called by Mr and Mrs. M Lambert , who purchased a one bedroom flat in Brighouse in April 1997. The question was if we could estimate the premium would be to prolong the lease by an additional years. Similar premises in Brighouse with a long lease were in the region of £267,600. The average amount of ground rent was £65 billed quarterly. The lease concluded on 28 February 2093. Given that there were 67 years as a residual term we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 not including professional charges.
Mr V Miller took over the lease of a studio apartment in Brighouse in June 2012. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative residencies in Brighouse with a long lease were in the region of £206,200. The average amount of ground rent was £55 collected per annum. The lease expired on 10 July 2082. Taking into account 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.