As the length of the unexpired term of a Brighouse residential lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Brighouse will meet the qualifying criteria; that being said a conveyancer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Brighouse with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Retaining our service gives you increased control over the value of your Brighouse leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Finn, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Brighouse. Having bought his property two decades ago, the unexpired term was of no concern. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Finn was able to extend his lease just under the wire in September. Finn and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had dipped below eighty years, the premium would have gone up by a minimum £850.
Mrs Sian Davies completed a newly refurbished apartment in Brighouse in February 1997. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Brighouse with 100 year plus lease were in the region of £243,000. The mid-range ground rent payable was £65 billed per annum. The lease expired in 2088. Considering the 63 years outstanding we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus costs.
In 2012 we were phoned by Ms Melissa Clarke who, having completed a garden apartment in Brighouse in September 2007. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable properties in Brighouse with an extended lease were in the region of £181,600. The average amount of ground rent was £55 billed monthly. The lease came to a finish in 2077. Taking into account 52 years remaining we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including costs.