Brighton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Brighton tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Brighton you really ought to see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Brighton flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with over 100 years remaining 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 decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Yorkshire 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. |
Engaging our service will provide you increased control over the value of your Brighton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the landlord of her first floor apartment in Brighton, Natasha started the lease extension process as the 80 year threshold was swiftly coming. The legal work was finalised in March 2010. The freeholder’s charges were negotiated to approximately four hundred GBP.
In 2014 we were contacted by Dr T Michel who, having was assigned a lease of a one bedroom flat in Brighton in February 2007. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Brighton with an extended lease were worth £210,600. The mid-range ground rent payable was £45 collected annually. The lease concluded on 25 February 2088. Taking into account 62 years left we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including fees.
In 2012 we were e-mailed by Mr and Mrs. N Rogers who, having bought a basement apartment in Brighton in March 2005. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar homes in Brighton with a long lease were valued around £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease lapsed in 2099. Considering the 73 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.