It’s an underpublicised truth that a Brighouse residential lease is a wasting asset. As the lease term reduces so does the value of the property. 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.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. Most leasehold owners in Brighouse will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Brighouse,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Brighouse valuers.
In the wake of 6 months of protracted negotiations with the landlord of her purpose-built apartment in Brighouse, Grace started the lease extension process just as her lease was approaching the crucial eighty-year deadline. The lease extension completed in March 2005. The freeholder’s fees were negotiated to below 600 pounds.
In 2009 we were phoned by Mr and Mrs. E Gómez who, having acquired a newly refurbished apartment in Brighouse in January 2002. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Brighouse with an extended lease were in the region of £295,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 11 October 2101. Taking into account 75 years outstanding we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Last Spring we were e-mailed by Ms Sian López , who was assigned a lease of a ground floor apartment in Brighouse in March 2005. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical properties in Brighouse with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 invoiced quarterly. The lease terminated on 9 August 2090. Given that there were 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of fees.