There is no doubt about it a leasehold property in Brighton is a wasting asset as a result of the shortening lease. If the lease has, beyond 100 years remaining then this decrease may be fractional however there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Brighton will meet the qualifying criteria; however a lawyer will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Brighton with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Brighton can be a difficult process. We recommend you secure 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 in-depth market knowledge 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.
Ollie was the the leasehold owner of a conversion apartment in Brighton on the market with a lease of just over fifty eight years left. Ollie informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ollie to invoke his statutory right. Ollie procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last Spring we were e-mailed by Dr V Cook , who acquired a ground floor apartment in Brighton in June 2007. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Similar premises in Brighton with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease finished on 20 July 2103. Taking into account 77 years left we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Last Winter we were phoned by Ms Paige Vincent , who bought a first floor apartment in Brighton in June 2001. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Brighton with an extended lease were worth £183,600. The mid-range ground rent payable was £65 collected monthly. The lease terminated in 2083. Given that there were 57 years left we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.