There is no doubt about it a leasehold flat or house in Brixham is a wasting asset as a result of the shortening lease. Where the lease has, over 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Brixham will meet the qualifying criteria; that being said a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Felix owned a conversion apartment in Brixham on the market with a lease of fraction over 59 years unexpired. Felix informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Felix to exercise his statutory right. Felix procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Ms C Adams acquired a first floor flat in Brixham in February 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Brixham with a long lease were in the region of £261,600. The average ground rent payable was £60 invoiced every twelve months. The lease expired on 4 July 2076. Given that there were 52 years remaining we estimated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 not including fees.
Last Winter we were called by Mrs Stephanie Brooks , who bought a one bedroom flat in Brixham in April 2012. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar homes in Brixham with an extended lease were valued about £218,000. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out on 11 January 2087. Taking into account 63 years unexpired we estimated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus fees.