When it comes to residential leasehold premises in Brixham, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Anyone in Brixham with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. When a lease has below 80 years left, under the relevant statute the landlord can calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Brixham with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Brixham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Two years ago Arthur, started to get near to the 80-year mark with the lease on his leasehold flat in Brixham. Having purchased his property two decades ago, the unexpired term was of little relevance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Arthur extended the lease at the eleventh hour last January. Arthur and the freeholder subsequently agreed on the final figure of £5,500 . If he failed to meet the deadline, the amount would have increased by a minimum £1,150.
Mr and Mrs. V Miller acquired a ground floor flat in Brixham in June 1998. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Brixham with 100 year plus lease were worth £200,800. The average ground rent payable was £65 billed yearly. The lease concluded on 9 August 2086. Given that there were 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 not including professional charges.
In 2010 we were contacted by Dr M Brooks who, having moved into a studio apartment in Brixham in May 1999. The dilemma was if we could approximate the price could be for a 90 year lease extension. Identical homes in Brixham with an extended lease were valued around £255,000. The average amount of ground rent was £50 collected per annum. The lease finished on 20 October 2097. Having 71 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.