On the balance of probabilities if you own a flat in Beaworthy you actually own a long leasehold interest over your property
Leasehold residencies in Beaworthy with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Beaworthy can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 procuring Beaworthy lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the freeholder of her leasehold flat in Beaworthy, Kirsty initiated the lease extension process as the eighty year threshold was swiftly approaching. The lease extension was finalised in July 2006. The landlord’s charges were restricted to under 550 GBP.
Ms Lydia Johnson took over the lease of a recently refurbished apartment in Beaworthy in April 2009. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar premises in Beaworthy with an extended lease were worth £242,600. The average ground rent payable was £45 collected monthly. The lease finished in 2092. Given that there were 67 years left we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus legals.
In 2012 we were contacted by Dr U Phillips who, having purchased a one bedroom flat in Beaworthy in November 2007. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative homes in Beaworthy with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced yearly. The lease lapsed on 22 April 2103. Having 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.