New Brighton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most New Brighton tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in New Brighton you would be well advised to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the landlord of her one bedroom flat in New Brighton, Paige started the lease extension process just as her lease was coming close to the critical eighty-year mark. The legal work was concluded in March 2010. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were called by Mr N Roberts , who took over the lease of a purpose-built flat in New Brighton in September 1998. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparable residencies in New Brighton with 100 year plus lease were worth £191,000. The average ground rent payable was £65 collected per annum. The lease end date was in 2083. Taking into account 58 years unexpired we calculated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 plus costs.
In 2010 we were e-mailed by Dr Joseph Gómez who, having was assigned a lease of a one bedroom apartment in New Brighton in October 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar homes in New Brighton with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out on 24 February 2094. Taking into account 69 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.