For anyone whose Beaworthy property is held on a long lease, our message is clear – if you ignore the situation, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold properties in Beaworthy with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Beaworthy,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beaworthy valuers.
Isaac was the the leasehold proprietor of a 2 bedroom apartment in Beaworthy being marketed with a lease of a few days over sixty years remaining. Isaac informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be due on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
Last Winter we were contacted by Ms Amy James , who took over the lease of a one bedroom apartment in Beaworthy in November 2008. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical premises in Beaworthy with a long lease were valued around £255,000. The average amount of ground rent was £50 collected annually. The lease concluded in 2096. Taking into account 70 years left we calculated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 not including costs.
Last month we were e-mailed by Mr and Mrs. A Laurent , who acquired a one bedroom apartment in Beaworthy in October 2003. The question was if we could approximate the premium would likely be for a 90 year lease extension. Similar flats in Beaworthy with a long lease were in the region of £246,800. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish in 2076. Having 50 years unexpired we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 plus legals.