It’s a harsh certainty that a Brighouse residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Brighouse property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term falls below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Brighouse will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Engaging our service will provide you increased control over the value of your Brighouse leasehold, as your property will be more valuable and marketable in respect of 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.
Trailing protracted discussions with the freeholder of her studio apartment in Brighouse, Freya commenced the lease extension process as the eighty year mark was rapidly approaching. The legal work was concluded in October 2012. The freeholder’s charges were kept to an absolute minimum.
Dr N Green acquired a studio flat in Brighouse in May 2009. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Similar premises in Brighouse with 100 year plus lease were worth £216,000. The average ground rent payable was £60 collected yearly. The lease concluded on 13 June 2083. Taking into account 58 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.
Mr B Rogers was assigned a lease of a recently refurbished flat in Brighouse in June 1995. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Brighouse with 100 year plus lease were worth £200,000. The average ground rent payable was £50 invoiced quarterly. The lease came to a finish in 2103. Given that there were 78 years outstanding we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.