With a domestic leasehold property in New Brighton, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Anyone in New Brighton with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has fewer than 80 years remaining, under the current legislation the landlord can calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in New Brighton with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you better control over the value of your New Brighton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Tommy was the the leasehold proprietor of a high value apartment in New Brighton on the market with a lease of a little over 61 years remaining. Tommy on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2013 we were e-mailed by Dr Y Wilson who, having completed a newly refurbished flat in New Brighton in October 2000. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar flats in New Brighton with an extended lease were valued about £176,200. The mid-range ground rent payable was £65 collected every twelve months. The lease ended in 2082. Given that there were 56 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of professional charges.
Mr and Mrs. H Bennett purchased a ground floor flat in New Brighton in January 2010. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar residencies in New Brighton with 100 year plus lease were worth £242,600. The average amount of ground rent was £45 invoiced quarterly. The lease ended on 3 July 2093. Taking into account 67 years left we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.