Why you should start your Brighouse lease extension

Main reasons to commence your Brighouse lease extension today:

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

When it comes to residential leasehold premises in Brighouse, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than eighty years left. Leasehold owners in Brighouse with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has under 80 years outstanding, under the relevant statute the landlord can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is payable.

Brighouse property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not finance a property on a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to become concerned at around 75 years. This may cause difficulties once you need to dispose of or remortgage your flat as it will be effectively unmortgageable. You may have no immediate intention to sell but when you do your buyer will need to hold off for 2 years before being able to start the legal procedures for an extension to the lease.

Get in touch with one of our Brighouse lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Brighouse,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brighouse valuers.

Brighouse Lease Extension Case Summaries:

Leah, Brighouse, West Yorkshire,

Trailing unsuccessful correspondence with the landlord of her basement flat in Brighouse, Leah commenced the lease extension process just as the lease was coming close to the critical eighty-year deadline. The transaction completed in January 2013. The landlord’s costs were negotiated to a tad over 650 GBP.

Brighouse case:

In 2012 we were called by Dr G Cooper who, having bought a one bedroom flat in Brighouse in October 2011. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical flats in Brighouse with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed annually. The lease elapsed on 22 September 2099. Considering the 73 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.

Brighouse case:

Last Spring we were contacted by Dr P Cook , who completed a first floor apartment in Brighouse in April 1995. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Brighouse with an extended lease were worth £240,600. The average ground rent payable was £60 billed monthly. The lease elapsed on 17 September 2088. Taking into account 62 years outstanding we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus expenses.