There is no doubt about it a leasehold flat or house in Brighton is a wasting asset as a result of the shortening lease. Where the lease has, more than one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Brighton will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jayden was the the leasehold proprietor of a conversion apartment in Brighton on the market with a lease of fraction over 59 years outstanding. Jayden on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
Dr Rhiannon Martínez acquired a purpose-built apartment in Brighton in May 2003. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Brighton with an extended lease were worth £166,400. The average amount of ground rent was £60 invoiced annually. The lease expired in 2080. Considering the 54 years left we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including expenses.
In 2009 we were phoned by Dr Samuel Vincent who, having was assigned a lease of a one bedroom apartment in Brighton in April 2012. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Identical homes in Brighton with a long lease were valued around £227,800. The average amount of ground rent was £45 billed annually. The lease expired on 18 February 2091. Given that there were 65 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.