It’s a harsh truth that a Brixworth residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Brixworth property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining drops under 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 flat owners in Brixworth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Brixworth can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Brixworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Ali, started to get close to the eighty-year threshold with the lease on his basement flat in Brixworth. Having purchased his home two decades ago, the lease term was of little bearing. Luckily, he became aware that he would imminently be paying an inflated amount for a lease extension. Ali was able to extend his lease just under the wire last January. Ali and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If the lease had dipped to less than eighty years, the amount would have become more costly by a minimum £1,050.
Dr Ryan Cooper moved into a one bedroom apartment in Brixworth in October 1996. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative flats in Brixworth with an extended lease were in the region of £255,000. The average ground rent payable was £50 invoiced annually. The lease finished on 6 June 2096. Given that there were 71 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
Dr H Young completed a basement flat in Brixworth in August 2000. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable premises in Brixworth with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 billed yearly. The lease lapsed in 2076. Given that there were 51 years remaining we estimated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of fees.