Unfortunately that a Beckermet residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Beckermet property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Beckermet will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Beckermet with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Beckermet,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Beckermet valuers.
Reuben owned a conversion apartment in Beckermet being marketed with a lease of just over sixty years outstanding. Reuben informally contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last Summer we were contacted by Dr Felix Cooper , who completed a one bedroom apartment in Beckermet in April 2009. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Identical homes in Beckermet with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 collected per annum. The lease ran out in 2077. Taking into account 52 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including fees.
In 2009 we were contacted by Mr C Garcia who, having took over the lease of a studio apartment in Beckermet in March 2002. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparative flats in Beckermet with a long lease were valued about £290,000. The average amount of ground rent was £45 invoiced yearly. The lease concluded in 2097. Given that there were 72 years outstanding we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus fees.