Brighton leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. Flat owners in Brighton will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Brighton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brighton valuers.
In 2014 Ibrahim, came perilously near to the 80-year threshold with the lease on his basement flat in Brighton. Having purchased his flat two decades ago, the length of the lease was of no relevance. Thankfully, he became aware that he needed to take action soon on a lease extension. Ibrahim arranged for a lease extension just under the wire last June. Ibrahim and the landlord who owned the flat above eventually settled on an amount of £5,500 . If the lease had fallen to less than eighty years, the premium would have escalated by a minimum £1,050.
In 2012 we were called by Mr H Scott who, having took over the lease of a ground floor apartment in Brighton in January 2000. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Brighton with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished in 2096. Having 70 years unexpired we approximated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 exclusive of legals.
In 2009 we were contacted by Ms U Norbert who, having purchased a basement flat in Brighton in November 1997. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical properties in Brighton with an extended lease were valued about £246,800. The average amount of ground rent was £60 billed quarterly. The lease terminated in 2076. Considering the 50 years outstanding we approximated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 plus professional charges.