There is no doubt about it a leasehold property in Brighouse is a wasting asset as a result of the shortening lease. If the lease has, in excess of one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer 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 main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Brighouse will qualify for this right; however a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Engaging our service gives you increased control over the value of your Brighouse leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the freeholder of her first floor apartment in Brighouse, Ellen started the lease extension process as the 80 year deadline was rapidly nearing. The lease extension completed in February 2005. The landlord’s charges were kept to an absolute minimum.
Dr Sarah Bonnet moved into a garden flat in Brighouse in February 1998. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparative premises in Brighouse with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease expired in 2103. Taking into account 77 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
Last Christmas we were e-mailed by Dr Callum Davies , who was assigned a lease of a basement flat in Brighouse in September 2000. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Brighouse with 100 year plus lease were valued around £260,200. The mid-range amount of ground rent was £65 invoiced annually. The lease finished on 10 March 2092. Having 66 years remaining we approximated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of fees.