Beaconsfield leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Beaconsfield tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Beaconsfield you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure Beaconsfield 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 conveyancer we work with provide it.
Last year Arthur, started to get near to the eighty-year threshold with the lease on his leasehold flat in Beaconsfield. Having bought his property two decades ago, the lease term was of no concern. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Arthur arranged for a lease extension just in the nick of time last May. Arthur and the freeholder via the managing agents eventually settled on a premium of £6,000 . If the lease had fallen lower than eighty years, the premium would have escalated by at least £1,025.
Last Christmas we were e-mailed by Mr and Mrs. H Lefèvre , who completed a garden apartment in Beaconsfield in May 2006. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative residencies in Beaconsfield with a long lease were in the region of £168,800. The average amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2080. Taking into account 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
Dr Daisy Sánchez moved into a basement flat in Beaconsfield in March 2007. The question was if we could approximate the price would be for a ninety year extension to my lease. Similar residencies in Beaconsfield with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed every twelve months. The lease expired in 2091. Taking into account 66 years left we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.