There is no doubt about it a leasehold property in Beacontree Heath is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 100 years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Beacontree Heath will meet the qualifying criteria; that being said a conveyancer will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same 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 ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Beacontree Heath 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 lawyer we work with provide it.
Last Winter Alexander, came precariously near to the 80-year mark with the lease on his two bedroom apartment in Beacontree Heath. In buying his property two decades ago, the length of the lease was of little bearing. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Alexander extended the lease just in the nick of time last August. Alexander and the freeholder subsequently agreed on the final figure of £6,000 . If the lease had slid to less than eighty years, the amount would have increased by a minimum £900.
Last month we were approach by Mrs J David , who moved into a studio apartment in Beacontree Heath in August 2003. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparable properties in Beacontree Heath with a long lease were worth £285,000. The average ground rent payable was £45 billed monthly. The lease finished in 2096. Having 72 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.
An example of a Lease Extension case for a Beacontree Heath property is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case related to 1 flat. The remaining number of years on the lease was 61.36 years.