As the the remaining lease term of a Brighton residential lease lessens so does its value and therefore the value of your property. If the residual term has, over one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner rather than later. Most flat owners in Brighton will meet the qualifying criteria; nevertheless a lawyer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Brighton with over 100 years left 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Brighton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
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 dealing with Brighton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the landlord of her first floor flat in Brighton, Elizabeth initiated the lease extension process as the 80 year mark was fast coming. The legal work was concluded in September 2012. The freeholder’s fees were restricted to a tad over 500 pounds.
In 2011 we were phoned by Mr and Mrs. W Martinez who, having purchased a one bedroom apartment in Brighton in October 2012. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparative flats in Brighton with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 collected quarterly. The lease came to a finish on 18 July 2095. Having 69 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2012 we were phoned by Dr N Phillips who, having acquired a studio apartment in Brighton in March 2009. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Similar flats in Brighton with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £60 collected per annum. The lease ran out on 28 September 2106. Having 80 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.