The market value of a leasehold property in Beckenham depends on how many years the lease has left to run. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be finalised in advance of the 80 year mark. Statute entitles Beckenham qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Beckenham 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.
In recent months Theo, came critically close to the eighty-year mark with the lease on his two bedroom apartment in Beckenham. Having bought his home two decades ago, the lease term was of no interest. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Theo extended the lease at the eleventh hour in June. Theo and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If he had missed the deadline, the amount would have gone up by at least £875.
In 2011 we were phoned by Ms O Young who, having was assigned a lease of a basement flat in Beckenham in October 2012. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative premises in Beckenham with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 collected every twelve months. The lease came to a finish in 2103. Given that there were 78 years outstanding we estimated the premium to the landlord to extend the lease to be within £7,600 and £8,800 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Beckenham flat is 26 Manor Road in July 2010. the Tribunal decided that price to be paid for the freehold was £12,420 This case related to 2 flats. The unexpired lease term was 76.75 and 88.83.