It’s an underpublicised truth that a Beckermet residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Beckermet property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Most flat owners in Beckermet will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Beckermet with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Beckermet,the lease extension lawyers that we work with will always be willing 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.
Joshua owned a high value flat in Beckermet being marketed with a lease of fraction over fifty eight years unexpired. Joshua informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to invoke his statutory right. Joshua procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Mr Mason Gunderson purchased a newly refurbished flat in Beckermet in October 1995. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar flats in Beckermet with an extended lease were worth £200,000. The average ground rent payable was £50 billed every twelve months. The lease end date was in 2104. Given that there were 78 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Mr Lucas González purchased a basement apartment in Beckermet in November 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Beckermet with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 billed per annum. The lease termination date was on 11 October 2093. Given that there were 67 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus expenses.