Unfortunately that a Brighstone residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Brighstone property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. The majority of flat owners in Brighstone will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Brighstone with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Santander | |
| TSB | |
| Royal Bank of Scotland |
The conveyancers that we work with procure Brighstone lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Joshua was the the leasehold owner of a 2 bedroom flat in Brighstone on the market with a lease of fraction over sixty years left. Joshua informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Dr U François moved into a one bedroom apartment in Brighstone in August 1995. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Brighstone with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease finished in 2102. Considering the 76 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
In 2009 we were e-mailed by Mr and Mrs. K Leroy who, having purchased a first floor apartment in Brighstone in November 2007. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Comparative premises in Brighstone with 100 year plus lease were valued about £252,800. The average ground rent payable was £65 collected annually. The lease end date was on 6 June 2091. Considering the 65 years left we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus costs.