The value of Beacontree Heath leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is less than eighty years
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Beacontree Heath 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 conveyancing solicitor we work with provide it.
Last Christmas Finn, started to get close to the 80-year threshold with the lease on his garden flat in Beacontree Heath. In buying his flat two decades ago, the unexpired term was of little relevance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Finn arranged for a lease extension just in the nick of time last June. Finn and the landlord subsequently settled on the final figure of £5,000 . If he not met the deadline, the amount would have become more exhorbitant by at least £1,025.
Mr and Mrs. B Rogers moved into a first floor flat in Beacontree Heath in April 2011. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Beacontree Heath with an extended lease were in the region of £216,000. The average ground rent payable was £60 invoiced per annum. The lease ended in 2084. Given that there were 58 years outstanding we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus professional charges.
An example of a Lease Extension case 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 lease term was 61.36 years.