Brighouse leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Brighouse tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Brighouse you really ought to investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Brighouse flat owner with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Brighouse with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Brighouse,the lease extension experts that we work with will always be prepared 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.
After protracted correspondence with the landlord of her leasehold apartment in Brighouse, Samantha started the lease extension process just as the lease was approaching the all-important eighty-year threshold. The transaction completed in January 2012. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Dr F Sánchez , who owned a garden flat in Brighouse in March 2002. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative premises in Brighouse with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 billed annually. The lease ran out in 2093. Given that there were 68 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Mr and Mrs. M Taylor acquired a studio apartment in Brighouse in February 1998. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Brighouse with an extended lease were worth £208,600. The average ground rent payable was £60 billed every twelve months. The lease ran out on 16 September 2082. Taking into account 57 years unexpired we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.