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 allowing qualifying Beckermet residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Beckermet you should investigate if your lease has between seventy and ninety years left. There are good reasons why a Beckermet leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Beckermet leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Aaron, came precariously close to the eighty-year mark with the lease on his studio apartment in Beckermet. In buying his home 19 years ago, the unexpired term was of minimal interest. Fortunately, he noticed he needed to take action soon on a lease extension. Aaron extended the lease just ahead of time in September. Aaron and the landlord ultimately agreed on the final figure of £5,000 . If the lease had fallen to less than eighty years, the premium would have escalated by at least £900.
Last year we were called by Mr Joseph Richardson , who took over the lease of a one bedroom flat in Beckermet in May 2005. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparative residencies in Beckermet with an extended lease were in the region of £213,600. The average amount of ground rent was £60 billed every twelve months. The lease expiry date was in 2082. Taking into account 57 years left we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.
Last Autumn we were phoned by Ms L James , who purchased a first floor flat in Beckermet in November 1996. The question was if we could estimate the price would be to extend the lease by ninety years. Identical properties in Beckermet with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed yearly. The lease end date was on 1 February 2103. Considering the 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.