Chances are that where you own a flat in Brighouse you actually own a long leasehold interest over your property
Leasehold residencies in Brighouse with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Brighouse,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Brighouse valuers.
Ryan owned a conversion apartment in Brighouse being marketed with a lease of a few days over 59 years left. Ryan informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Dr O Brown was assigned a lease of a basement flat in Brighouse in July 2006. The question was if we could estimate the price would be to extend the lease by a further 90 years. Comparable premises in Brighouse with an extended lease were valued around £200,000. The average amount of ground rent was £50 billed annually. The lease terminated on 14 November 2102. Taking into account 77 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
In 2013 we were approached by Mr and Mrs. A Díaz who, having acquired a first floor flat in Brighouse in May 1997. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable homes in Brighouse with an extended lease were worth £260,200. The average amount of ground rent was £65 invoiced annually. The lease expiry date was on 23 June 2091. Taking into account 66 years left we calculated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 not including expenses.