For anyone whose Beacontree Heath property is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold residencies in Beacontree Heath with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The lawyers that we work with procure 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 lawyer we work with provide it.
Trailing protracted negotiations with the landlord of her first floor apartment in Beacontree Heath, Mollie started the lease extension process just as her lease was nearing the all-important eighty-year deadline. The legal work was concluded in September 2015. The landlord’s charges were negotiated to below six hundred pounds.
Dr S Turner bought a basement flat in Beacontree Heath in November 1999. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Similar residencies in Beacontree Heath with a long lease were valued around £191,400. The average amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2080. Considering the 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 plus expenses.
An example of a Lease Extension matter before the tribunal for a Beacontree Heath flat 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 residue of the current lease was 61.36 years.