Beaconsfield leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Beaconsfield tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Beaconsfield you should investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Beaconsfield flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Beaconsfield can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 Beaconsfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Charlie owned a high value flat in Beaconsfield on the market with a lease of just over 72 years left. Charlie on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Charlie to exercise his statutory right. Charlie procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Last year we were phoned by Dr K Harris , who acquired a purpose-built apartment in Beaconsfield in October 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Beaconsfield with an extended lease were in the region of £186,000. The average ground rent payable was £65 invoiced per annum. The lease lapsed on 15 October 2084. Considering the 58 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 not including expenses.
Last Spring we were called by Dr Phoebe Mitchell , who was assigned a lease of a purpose-built flat in Beaconsfield in March 2006. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical homes in Beaconsfield with a long lease were valued about £250,000. The average ground rent payable was £50 collected every twelve months. The lease expired on 26 August 2095. Considering the 69 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.