Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Beaufort. Clearly, the period of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Beaufort have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give due deliberation before putting off your Beaufort lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with undertake Beaufort 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 conveyancing solicitor we work with provide it.
Trailing unsuccessful discussions with the landlord of her studio apartment in Beaufort, Maisie initiated the lease extension process as the 80 year threshold was rapidly coming. The legal work completed in October 2008. The freeholder’s fees were restricted to less than 500 GBP.
Mr R Petit took over the lease of a garden flat in Beaufort in April 2002. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Similar flats in Beaufort with an extended lease were valued about £260,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease terminated in 2091. Given that there were 66 years remaining we approximated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 plus expenses.
Dr F González moved into a first floor apartment in Beaufort in February 2002. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable flats in Beaufort with a long lease were valued around £198,800. The mid-range amount of ground rent was £55 collected per annum. The lease lapsed in 2080. Given that there were 55 years left we approximated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including expenses.