Unfortunately that a Brixham residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Brixham property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Brixham will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Brixham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brixham valuers.
After lengthy discussions with the freeholder of her garden apartment in Brixham, Robyn initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The lease extension was finalised in January 2005. The freeholder’s costs were restricted to less than 500 pounds.
Last month we were phoned by Mrs Holly Turner , who completed a ground floor flat in Brixham in July 2005. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Brixham with a long lease were in the region of £261,600. The average ground rent payable was £60 invoiced yearly. The lease concluded on 3 January 2077. Taking into account 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of fees.
Last Autumn we were e-mailed by Mr and Mrs. B Martinez , who purchased a garden flat in Brixham in February 2009. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Brixham with 100 year plus lease were in the region of £218,000. The mid-range ground rent payable was £45 invoiced annually. The lease terminated in 2088. Taking into account 63 years remaining we calculated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including costs.