Brighouse leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Brighouse enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Brighouse you really ought to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Brighouse lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 6 months of lengthy correspondence with the landlord of her one bedroom apartment in Brighouse, Sarah commenced the lease extension process just as the lease was approaching the critical 80-year threshold. The transaction completed in March 2011. The landlord’s charges were negotiated to approximately 550 GBP.
In 2010 we were e-mailed by Mr Y Carter who, having took over the lease of a studio flat in Brighouse in November 2001. The question was if we could approximate the premium could be for a ninety year lease extension. Comparable homes in Brighouse with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 invoiced monthly. The lease concluded in 2103. Taking into account 78 years remaining we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
Last May we were phoned by Dr Finn Morel , who owned a purpose-built flat in Brighouse in March 2004. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar residencies in Brighouse with an extended lease were worth £267,600. The average amount of ground rent was £65 collected quarterly. The lease finished on 8 October 2092. Taking into account 67 years as a residual term we approximated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of costs.