The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Beacontree Heath can extend the lease for a further 90 years in accordance with statute. Do give careful consideration before delaying your Beacontree Heath lease extension. Shelving that expense now simply increases the amount you will eventually be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as 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 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 Beacontree Heath,the lease extension lawyers 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 Beacontree Heath valuers.
Following unsuccessful correspondence with the freeholder of her ground floor flat in Beacontree Heath, Sophie commenced the lease extension process as the eighty year mark was swiftly nearing. The transaction was finalised in May 2006. The freeholder’s fees were negotiated to under 550 pounds.
In 2011 we were contacted by Dr Harrison Alexander who, having acquired a studio flat in Beacontree Heath in March 2011. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Beacontree Heath with a long lease were valued around £240,600. The average amount of ground rent was £60 collected every twelve months. The lease concluded in 2088. Given that there were 62 years outstanding we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including costs.
An example of a Lease Extension decision for a Beacontree Heath premises 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 was in relation to 1 flat. The unexpired term as at the valuation date was 61.36 years.