Beaconsfield residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
Leasehold properties in Beaconsfield with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Beaconsfield leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted discussions with the landlord of her basement apartment in Beaconsfield, Sophia initiated the lease extension process just as her lease was coming close to the critical 80-year mark. The transaction was finalised in February 2012. The freeholder’s costs were negotiated to a tad over 600 pounds.
In 2010 we were phoned by Dr Finley Peterson who, having owned a ground floor flat in Beaconsfield in September 2008. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparable homes in Beaconsfield with a long lease were worth £193,400. The average amount of ground rent was £65 invoiced per annum. The lease concluded in 2084. Considering the 59 years left we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus expenses.
Last Winter we were contacted by Mrs N Rodríguez , who completed a garden apartment in Beaconsfield in June 2012. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative residencies in Beaconsfield with a long lease were in the region of £250,000. The average amount of ground rent was £50 collected annually. The lease elapsed on 5 July 2095. Considering the 70 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.