With a long leasehold premises in Beckermet, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about 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 notably once there are less than 80 years left. Residents in Beckermet with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has below eighty years outstanding, under the relevant statute the landlord is entitled to calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Beckermet,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beckermet valuers.
After lengthy discussions with the freeholder of her studio flat in Beckermet, Mollie started the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension completed in April 2015. The landlord’s charges were kept to an absolute minimum.
In 2010 we were called by Mr and Mrs. P Ramírez who, having owned a one bedroom flat in Beckermet in September 2011. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative properties in Beckermet with an extended lease were in the region of £265,200. The average amount of ground rent was £65 collected per annum. The lease ended on 23 May 2091. Taking into account 66 years left we estimated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 not including costs.
In 2009 we were phoned by Mr and Mrs. E Ward who, having took over the lease of a basement flat in Beckermet in June 2010. We are asked if we could approximate the price would be for a ninety year lease extension. Identical homes in Beckermet with a long lease were in the region of £198,800. The average amount of ground rent was £55 billed yearly. The lease came to a finish on 28 November 2080. Given that there were 55 years outstanding we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus costs.