Brixham leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be due. Flat owners in Brixham will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service gives you better control over the value of your Brixham leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Dylan, started to get close to the 80-year threshold with the lease on his leasehold apartment in Brixham. In buying his flat 18 years ago, the length of the lease was of no bearing. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Dylan extended the lease just ahead of time last March. Dylan and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If he not met the deadline, the amount would have gone up by a minimum £1,075.
Mr and Mrs. D Ricardo took over the lease of a purpose-built apartment in Brixham in September 2009. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical residencies in Brixham with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed annually. The lease ran out in 2076. Considering the 51 years left we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of legals.
In 2011 we were approached by Mrs Gemma Roux who, having bought a garden apartment in Brixham in February 2003. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar homes in Brixham with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease finished in 2087. Having 62 years as a residual term we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of fees.