The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Beacontree Heath can extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Beacontree Heath lease extension. Postponing the costs today simply increases the premium you will eventually have to pay to extend the lease.
Leasehold residencies in Beacontree Heath with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Two years ago Jack, started to get close to the eighty-year mark with the lease on his basement flat in Beacontree Heath. In buying his property twenty years ago, the length of the lease was of little importance. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Jack was able to extend his lease just in the nick of time last May. Jack and the freeholder eventually agreed on the final figure of £5,500 . If the lease had descended lower than 80 years, the figure would have become more costly by at least £1,150.
Last Christmas we were e-mailed by Mr C Khan , who was assigned a lease of a studio flat in Beacontree Heath in November 2004. The question was if we could estimate the price would likely be to extend the lease by ninety years. Similar properties in Beacontree Heath with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed quarterly. The lease terminated in 2102. Considering the 78 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 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 affected 1 flat. The unexpired lease term was 61.36 years.