Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Brixham. Clearly, the length of lease left reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Brixham have the legal entitlement to extend the lease for an additional ninety years under statute. You should give careful deliberation before delaying your Brixham lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Brixham with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Brixham leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Connor, started to get close to the eighty-year mark with the lease on his ground floor flat in Brixham. In buying his property two decades ago, the length of the lease was of little bearing. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Connor was able to extend his lease at the eleventh hour in May. Connor and the landlord eventually agreed on an amount of £5,000 . If the lease had gone below 80 years, the sum would have increased by at least £1,125.
Last Spring we were phoned by Mrs M Kelly , who bought a basement flat in Brixham in March 2010. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparable flats in Brixham with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 billed every twelve months. The lease terminated on 6 October 2099. Given that there were 74 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Summer we were phoned by Dr Alfie García , who purchased a basement apartment in Brixham in August 2010. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Brixham with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 collected monthly. The lease elapsed in 2079. Considering the 54 years unexpired we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus expenses.