Brighton residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold properties in Brighton with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Brighton can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 procuring Brighton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Jasper, came very close to the 80-year mark with the lease on his two bedroom apartment in Brighton. Having purchased his flat twenty years ago, the length of the lease was of no interest. Fortunately, he became aware that he would soon be paying way over the odds for Extending the lease. Jasper extended the lease just under the wire last July. Jasper and the landlord who owned the flat above eventually settled on sum of £5,500 . If he not met the deadline, the sum would have increased by a minimum £975.
Mr E Fournier bought a garden apartment in Brighton in April 2002. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable flats in Brighton with a long lease were worth £235,200. The mid-range ground rent payable was £45 collected per annum. The lease elapsed on 22 April 2092. Having 66 years as a residual term we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.
Last Christmas we were approach by Mrs Jennifer Richardson , who completed a one bedroom apartment in Brighton in May 2010. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Brighton with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished in 2103. Having 77 years left we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.