Beckermet leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Beckermet residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Beckermet you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Beckermet,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beckermet valuers.
After protracted negotiations with the landlord of her ground floor flat in Beckermet, Isobel initiated the lease extension process as the 80 year deadline was quickly nearing. The legal work completed in September 2013. The freeholder’s fees were kept to an absolute minimum.
Dr H Allen took over the lease of a recently refurbished flat in Beckermet in August 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Beckermet with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 collected every twelve months. The lease finished on 24 April 2093. Taking into account 67 years unexpired we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of legals.
Dr O Collins completed a one bedroom flat in Beckermet in January 1995. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparative residencies in Beckermet with an extended lease were valued about £201,200. The average ground rent payable was £55 collected yearly. The lease came to a finish in 2082. Having 56 years outstanding we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus professional charges.