The market value of a leasehold property in Brighton is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years remaining so that all matters can be finalised ahead of the 80 year cut off point. Leasehold Reform legislation entitles Brighton qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brighton valuers.
Freddie was the the leasehold proprietor of a 2 bedroom apartment in Brighton on the market with a lease of fraction over fifty eight years unexpired. Freddie informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr Luke Walker owned a one bedroom apartment in Brighton in October 1996. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable flats in Brighton with a long lease were valued around £225,400. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish on 28 February 2090. Taking into account 64 years unexpired we approximated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of fees.
Dr Dylan Lefebvre took over the lease of a garden flat in Brighton in July 1997. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Brighton with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease concluded on 18 May 2101. Given that there were 75 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.