There is no doubt about it a leasehold flat or house in Beaufort is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Beaufort will qualify for this right; however a conveyancing solicitor will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Beaufort with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Beaufort can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 dealing with Beaufort lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Tyler, started to get close to the eighty-year threshold with the lease on his garden flat in Beaufort. Having bought his home twenty years ago, the length of the lease was of minimal relevance. Thankfully, he noticed he needed to take action soon on a lease extension. Tyler extended the lease at the eleventh hour last August. Tyler and the landlord subsequently settled on sum of £6,000 . If the lease had descended below 80 years, the sum would have increased by a minimum £975.
Mr and Mrs. N González owned a one bedroom flat in Beaufort in April 2003. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparative residencies in Beaufort with a long lease were worth £250,400. The average amount of ground rent was £65 collected monthly. The lease expired on 25 February 2088. Given that there were 64 years left we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus professional charges.
Last Autumn we were contacted by Mrs D Collins , who was assigned a lease of a first floor flat in Beaufort in March 2007. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative flats in Beaufort with an extended lease were valued about £184,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease ended in 2077. Taking into account 53 years unexpired we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus professional charges.