Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Brixham. Clearly, the term of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Brixham have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Please give due consideration before delaying your Brixham lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 75 years plus the term of the mortgage at the outset 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 Brixham can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Brixham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Archie, came very close to the eighty-year threshold with the lease on his basement apartment in Brixham. In buying his home twenty years ago, the length of the lease was of no interest. by good luck, he realised he would soon be paying way over the odds for Extending the lease. Archie was able to extend his lease just ahead of time last January. Archie and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the price would have increased by at least £1,150.
Mr Alfie Moore purchased a one bedroom apartment in Brixham in February 1998. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparable premises in Brixham with 100 year plus lease were worth £191,000. The mid-range amount of ground rent was £65 billed per annum. The lease finished on 25 April 2084. Given that there were 58 years unexpired we calculated the premium to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of costs.
Mr and Mrs. K Peterson was assigned a lease of a basement flat in Brixham in July 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Brixham with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced annually. The lease ran out in 2095. Given that there were 69 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.