Brighstone leases on residential deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Brighstone will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Brighstone with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. 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 |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
The conveyancers that we work with handle 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.
In the wake of eight months of unsuccessful correspondence with the freeholder of her two bedroom flat in Brighstone, Lydia initiated the lease extension process as the 80 year mark was rapidly coming. The lease extension was finalised in June 2005. The freeholder’s costs were negotiated to a tad over 500 GBP.
In 2014 we were called by Mr and Mrs. T Simon who, having was assigned a lease of a basement apartment in Brighstone in May 2009. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Brighstone with a long lease were in the region of £210,000. The average amount of ground rent was £50 billed annually. The lease concluded in 2105. Taking into account 80 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.
Mr and Mrs. B Bonnet owned a one bedroom apartment in Brighstone in May 1998. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative flats in Brighstone with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 collected per annum. The lease lapsed in 2095. Considering the 70 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.