With a residential leasehold premises in Brighouse, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years left. Leasehold owners in Brighouse with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has under eighty years outstanding, under the relevant legislation the landlord can calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Brighouse can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor 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 a wealth of experience 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 year Felix, came perilously near to the eighty-year threshold with the lease on his leasehold flat in Brighouse. In buying his home 18 years previously, the length of the lease was of little interest. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Felix extended the lease just under the wire last March. Felix and the landlord subsequently agreed on an amount of £6,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £850.
In 2011 we were approached by Mr and Mrs. H Campbell who, having owned a ground floor flat in Brighouse in September 2003. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative homes in Brighouse with an extended lease were valued around £198,800. The average amount of ground rent was £55 collected every twelve months. The lease termination date was in 2080. Given that there were 55 years remaining we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.
Mr and Mrs. J Hill was assigned a lease of a studio flat in Brighouse in July 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Brighouse with an extended lease were worth £295,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ran out in 2100. Given that there were 75 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.