When it comes to residential leasehold property in Beckermet, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Anyone in Beckermet with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below 80 years remaining, under the current statute the landlord is entitled to calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 landlord in Beckermet,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beckermet valuers.
Off the back of protracted discussions with the landlord of her ground floor apartment in Beckermet, Nicole started the lease extension process just as the lease was approaching the all-important 80-year threshold. The lease extension completed in January 2010. The landlord’s fees were restricted to about 600 pounds.
In 2012 we were e-mailed by Dr Harrison Rose who, having took over the lease of a basement apartment in Beckermet in October 2001. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Beckermet with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease elapsed on 26 July 2101. Having 76 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Dr Lydia Lefèvre took over the lease of a first floor apartment in Beckermet in June 1998. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative properties in Beckermet with an extended lease were worth £257,800. The mid-range amount of ground rent was £65 collected per annum. The lease concluded in 2090. Given that there were 65 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 plus expenses.