With a domestic leasehold property in Brighstone, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Leasehold owners in Brighstone with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has under eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Brighstone,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brighstone valuers.
Seth owned a conversion apartment in Brighstone being marketed with a lease of a little over 59 years outstanding. Seth on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be due on a lease extension were Seth to exercise his statutory right. Seth procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Last year we were approach by Mr and Mrs. H Ali , who purchased a ground floor apartment in Brighstone in June 2008. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Brighstone with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 collected annually. The lease lapsed in 2080. Taking into account 55 years left we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including legals.
In 2013 we were e-mailed by Mr and Mrs. I Wilson who, having moved into a newly refurbished flat in Brighstone in March 2010. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparable flats in Brighstone with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out on 23 July 2100. Given that there were 75 years unexpired we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.