When it comes to domestic leasehold premises in Brixton, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Residents in Brixton with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has fewer than 80 years remaining, under the current Act the landlord is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Brixton with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Brixton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brixton valuers.
Andrew owned a 2 bedroom flat in Brixton on the market with a lease of a little over sixty years unexpired. Andrew informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Andrew to exercise his statutory right. Andrew procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2013 we were approached by Mr and Mrs. U Jackson who, having owned a purpose-built apartment in Brixton in August 2003. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Identical flats in Brixton with a long lease were in the region of £171,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease concluded in 2076. Taking into account 50 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Brixton flat is 66 Southwell Road in March 2012. By Order of Deputy District Judge Stone dated 25 January 2012 a vesting order was made. The determination of the purchase price was referred to the Tribunal who decided that the amount payable for the freehold should be£29,612.00 This case affected 3 flats. The unexpired term was 72.58 years.