When it comes to domestic leasehold premises in Beacon Hill, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Residents in Beacon Hill with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has below 80 years outstanding, under the relevant statute the landlord can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Beacon Hill can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Beacon Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the freeholder of her first floor apartment in Beacon Hill, Anna started the lease extension process just as the lease was nearing the critical 80-year deadline. The transaction was concluded in July 2005. The landlord’s fees were restricted to approximately 600 GBP.
Last Christmas we were called by Dr W Lee , who owned a studio apartment in Beacon Hill in May 1996. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Beacon Hill with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish on 14 November 2090. Having 65 years left we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of legals.
Last Winter we were contacted by Mr and Mrs. F Cook , who was assigned a lease of a studio apartment in Beacon Hill in August 2008. The question was if we could approximate the premium would be to extend the lease by 90 years. Comparable homes in Beacon Hill with a long lease were valued about £191,400. The average amount of ground rent was £55 invoiced every twelve months. The lease expired on 17 August 2079. Having 54 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 not including professional charges.