There is no doubt about it a leasehold flat or house in Beddington is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Beddington will qualify for this right; nevertheless a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Beddington,the lease extension experts 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 Beddington valuers.
Last October Finley, came perilously close to the eighty-year mark with the lease on his ground floor flat in Beddington. In buying his home twenty years previously, the unexpired term was of minimal relevance. Fortunately, he realised he needed to take steps soon on a lease extension. Finley was able to extend his lease at the eleventh hour in January. Finley and the landlord who owned the flat above eventually agreed on sum of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £950.
Ms L Turner completed a one bedroom flat in Beddington in June 2007. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar homes in Beddington with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 billed per annum. The lease elapsed on 2 February 2100. Given that there were 75 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension decision for a Beddington residence is Ground Floor Flat 14 Lodge Road in October 2013. the tribunal held that the price payable for the acquisition of the extended lease of the property should be £12,590 .00 This case was in relation to 1 flat. The unexpired term as at the valuation date was 69.46 years.