Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Beacontree Heath. Inevitably, the length of lease remaining reduces as time goes by. This is often ignored and only becomes a problem when the residence needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Beacontree Heath have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give due deliberation before putting off your Beacontree Heath lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Beacontree Heath can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Beacontree Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Isaac, came very near to the 80-year mark with the lease on his first floor flat in Beacontree Heath. In buying his property twenty years previously, the unexpired term was of no relevance. As luck would have it, he recognised he would soon be paying way over the odds for Extending the lease. Isaac extended the lease just under the wire last June. Isaac and the landlord who owned the flat above in the end agreed on sum of £5,000 . If the lease had descended lower than 80 years, the price would have increased by a minimum £850.
Last Autumn we were contacted by Dr D Johnson , who was assigned a lease of a one bedroom apartment in Beacontree Heath in March 2001. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar flats in Beacontree Heath with an extended lease were valued about £166,800. The average ground rent payable was £50 billed yearly. The lease concluded in 2075. Taking into account 50 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including fees.
An example of a Lease Extension matter before the tribunal for a Beacontree Heath residence is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case affected 1 flat. The unexpired term as at the valuation date was 61.36 years.