Why you should start your Brighouse lease extension

Why you should commence your Brighouse lease extension today:

A Brighouse leasehold property depreciates with the years remaining on the lease.

Brighouse leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Brighouse will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.

Brighouse property with a lease extension is almost the same value as a freehold

Leasehold residencies in Brighouse with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may not finance a property with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This will be problematic as and when you come to sell or remortgage your property as it will be practically unmortgageable. You might not have an immediate plan to sell but when you do your buyer must wait 2 years before being able to commence the legal procedures for a lease extension.

Why use us for your lease extension in Brighouse?

Retaining our service gives you better control over the value of your Brighouse leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Brighouse Lease Extension Case Studies:

Sebastian, Brighouse, West Yorkshire,

Sebastian owned a conversion flat in Brighouse being sold with a lease of just over sixty years outstanding. Sebastian informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.

Brighouse case:

In 2013 we were called by Dr H Girard who, having took over the lease of a studio flat in Brighouse in April 1999. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable premises in Brighouse with an extended lease were valued about £257,800. The average ground rent payable was £65 invoiced per annum. The lease lapsed in 2091. Considering the 65 years as a residual term we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.

Brighouse case:

In 2009 we were e-mailed by Mr and Mrs. K Girard who, having acquired a ground floor flat in Brighouse in November 2002. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Brighouse with a long lease were in the region of £191,400. The average amount of ground rent was £55 invoiced per annum. The lease ran out in 2080. Considering the 54 years left we estimated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of fees.