It’s a harsh certainty that a Brighton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Brighton property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining slips below 80 years, you will end up paying 50% 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 extra value that a lease extension will add the property Most leasehold owners in Brighton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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 also be not less than 75 years 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Brighton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Brighton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Andrew owned a 2 bedroom apartment in Brighton on the market with a lease of fraction over fifty eight years left. Andrew on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Dr K Peterson completed a studio flat in Brighton in June 2001. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable flats in Brighton with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 billed annually. The lease expired on 20 January 2084. Given that there were 59 years outstanding we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of legals.
Last Spring we were phoned by Dr Elizabeth Thompson , who was assigned a lease of a garden flat in Brighton in March 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Brighton with an extended lease were in the region of £255,000. The average ground rent payable was £50 billed quarterly. The lease finished in 2095. Given that there were 70 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 exclusive of fees.