Brighton leases on residential properties are gradually diminishing 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. Legislation has been in place for sometime now which entitles qualifying Brighton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Brighton you really ought to see if your lease has between 70 and ninety years remaining. There are good reasons why a Brighton leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
Lease extensions in Brighton can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
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.
Subsequent to protracted correspondence with the freeholder of her one bedroom flat in Brighton, Kirsty initiated the lease extension process as the 80 year threshold was rapidly advancing. The legal work completed in November 2014. The landlord’s fees were kept to an absolute minimum.
In 2009 we were called by Dr V Girard who, having bought a one bedroom flat in Brighton in September 1999. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Identical residencies in Brighton with 100 year plus lease were valued around £176,200. The average ground rent payable was £65 invoiced quarterly. The lease expired in 2082. Considering the 56 years unexpired we approximated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including expenses.
In 2010 we were contacted by Mr and Mrs. S King who, having took over the lease of a newly refurbished apartment in Brighton in April 2004. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Brighton with a long lease were valued about £242,600. The average ground rent payable was £45 collected per annum. The lease termination date was in 2093. Taking into account 67 years left we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus fees.