On the balance of probabilities where you own a flat in Beckermet you actually own a long leasehold interest over your property
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
The lawyers that we work with handle Beckermet 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 conveyancer we work with provide it.
Reuben owned a studio flat in Beckermet being sold with a lease of fraction over 61 years left. Reuben on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Reuben to invoke his statutory right. Reuben obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2011 we were approached by Dr Alicia Carter who, having took over the lease of a first floor apartment in Beckermet in October 2012. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparative flats in Beckermet with an extended lease were valued around £174,200. The mid-range ground rent payable was £55 invoiced yearly. The lease termination date was in 2077. Given that there were 51 years unexpired we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of expenses.
In 2010 we were approached by Dr Stanley Lewis who, having completed a basement flat in Beckermet in March 2010. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparable homes in Beckermet with an extended lease were worth £280,000. The mid-range ground rent payable was £45 billed monthly. The lease concluded in 2097. Taking into account 71 years left we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.