Brighton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly 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 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Brighton you must investigate if your lease has between seventy and 90 years left. There are good reasons why a Brighton leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
The conveyancing solicitors that we work with undertake Brighton 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 lawyer we work with provide it.
Leon was the the leasehold proprietor of a conversion flat in Brighton on the market with a lease of a little over 72 years remaining. Leon informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Last Spring we were phoned by Dr Sophie Watson , who owned a one bedroom flat in Brighton in August 2001. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative premises in Brighton with an extended lease were worth £260,000. The average ground rent payable was £50 collected annually. The lease came to a finish on 27 March 2098. Having 72 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Mr Charlie Walker owned a one bedroom flat in Brighton in April 2008. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar premises in Brighton with 100 year plus lease were worth £261,600. The average amount of ground rent was £60 collected annually. The lease terminated on 3 June 2078. Taking into account 52 years outstanding we estimated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of professional charges.