Brixworth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Brixworth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Brixworth you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Brixworth with more than one hundred years outstanding on the lease are sometimes regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Brixworth,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brixworth valuers.
Aiden was the the leasehold proprietor of a 2 bedroom apartment in Brixworth being sold with a lease of a little over sixty years outstanding. Aiden informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aiden to invoke his statutory right. Aiden obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last Spring we were approach by Mrs E Brooks , who moved into a garden flat in Brixworth in August 2011. We are asked if we could estimate the price would be to extend the lease by 90 years. Identical properties in Brixworth with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 collected annually. The lease ended on 13 September 2076. Having 50 years left we calculated the premium to the landlord to extend the lease to be within £44,700 and £51,600 plus fees.
In 2009 we were phoned by Mr Ryan Martinez who, having completed a one bedroom apartment in Brixworth in June 2003. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar homes in Brixworth with a long lease were valued about £203,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expiry date was in 2087. Considering the 61 years outstanding we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.