Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Brighton. Clearly, the period of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Brighton have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due deliberation before delaying your Brighton lease extension. Putting off the cost now simply increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Brighton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tyler owned a high value flat in Brighton on the market with a lease of a little over 61 years outstanding. Tyler on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Tyler to exercise his statutory right. Tyler obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were e-mailed by Mr and Mrs. H Dupont who, having completed a recently refurbished apartment in Brighton in May 2006. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Brighton with a long lease were worth £191,000. The mid-range ground rent payable was £65 collected annually. The lease elapsed on 13 January 2084. Given that there were 58 years left we approximated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of fees.
Last Spring we were approach by Mrs A Torres , who purchased a first floor apartment in Brighton in May 1999. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparable premises in Brighton with an extended lease were valued about £250,000. The average amount of ground rent was £50 billed monthly. The lease ended on 20 July 2095. Taking into account 69 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.