When it comes to residential leasehold property in Brighstone, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Leasehold owners in Brighstone with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once a lease has under eighty years left, under the current Act the freeholder can calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Brighstone,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brighstone valuers.
14 months ago Jacob, started to get close to the eighty-year threshold with the lease on his ground floor flat in Brighstone. In buying his flat 19 years ago, the unexpired term was of minimal relevance. Fortunately, he realised he needed to take steps soon on a lease extension. Jacob was able to extend his lease just under the wire in September. Jacob and the freeholder via the management company ultimately settled on a premium of £6,000 . If he had missed the deadline, the premium would have gone up by at least £1,075.
In 2009 we were e-mailed by Mr and Mrs. R Scott who, having was assigned a lease of a one bedroom apartment in Brighstone in May 2007. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative properties in Brighstone with 100 year plus lease were in the region of £250,400. The mid-range ground rent payable was £65 collected every twelve months. The lease ended in 2090. Given that there were 64 years as a residual term we estimated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.
In 2010 we were e-mailed by Ms Freya Baker who, having purchased a purpose-built apartment in Brighstone in October 2009. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparative flats in Brighstone with an extended lease were in the region of £184,000. The average ground rent payable was £55 collected annually. The lease termination date was in 2079. Given that there were 53 years remaining we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.