Brighouse leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Brighouse residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Brighouse you would be well advised to see if your lease has between seventy and 90 years left. There are compelling reasons why a Brighouse leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Brighouse with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| 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. |
| 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 |
Lease extensions in Brighouse can be a difficult process. We recommend you obtain 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 in-depth market knowledge procuring Brighouse lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Leon, started to get close to the 80-year threshold with the lease on his ground floor flat in Brighouse. In buying his property two decades ago, the unexpired term was of no importance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Leon arranged for a lease extension at the eleventh hour in July. Leon and the freeholder via the managing agents eventually agreed on the final figure of £6,000 . If he not met the deadline, the amount would have become more exhorbitant by at least £900.
Last Summer we were called by Ms O Gunderson , who purchased a first floor apartment in Brighouse in March 2006. The question was if we could approximate the premium would be to prolong the lease by ninety years. Similar homes in Brighouse with 100 year plus lease were in the region of £171,800. The average ground rent payable was £55 invoiced quarterly. The lease end date was on 2 January 2076. Having 50 years left we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.
In 2010 we were phoned by Dr Gemma David who, having took over the lease of a one bedroom apartment in Brighouse in September 2005. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Brighouse with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease concluded on 24 November 2096. Considering the 70 years left we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.