It’s an underpublicised truth that a Brighouse residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Brighouse property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term falls below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Brighouse will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Brighouse can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.
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 dealing with Brighouse lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted negotiations with the freeholder of her two bedroom flat in Brighouse, Rhiannon started the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction was concluded in March 2010. The landlord’s fees were restricted to slightly above 550 GBP.
Mr and Mrs. P Bennett completed a first floor apartment in Brighouse in January 2012. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical flats in Brighouse with a long lease were worth £191,400. The average ground rent payable was £55 collected yearly. The lease ended on 7 October 2080. Given that there were 54 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 plus costs.
Last year we were contacted by Mr and Mrs. R Phillips , who was assigned a lease of a purpose-built apartment in Brighouse in February 2011. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparative flats in Brighouse with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 billed quarterly. The lease terminated on 25 October 2100. Having 74 years left we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.