With a long leasehold premises in Beaufort, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Anyone in Beaufort with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When the lease term has below 80 years left, under the current statute the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Beaufort can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge 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.
Jamie owned a studio flat in Beaufort being marketed with a lease of just over 61 years outstanding. Jamie on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie procured expert advice and secured an acceptable deal informally and sell the property.
Last Autumn we were contacted by Mr C Kelly , who owned a ground floor apartment in Beaufort in March 2010. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparable residencies in Beaufort with 100 year plus lease were worth £208,600. The mid-range amount of ground rent was £60 invoiced annually. The lease ended on 3 October 2082. Considering the 57 years remaining we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including fees.
Last Autumn we were contacted by Dr T Carter , who bought a basement apartment in Beaufort in September 2003. The question was if we could approximate the price would be to extend the lease by 90 years. Similar homes in Beaufort with an extended lease were worth £200,000. The mid-range ground rent payable was £50 collected monthly. The lease lapsed in 2102. Considering the 77 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.