Unfortunately that a Beaconsfield residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Beaconsfield property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Beaconsfield 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 situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Beaconsfield 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Beaconsfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Seth owned a high value apartment in Beaconsfield being sold with a lease of fraction over fifty eight years left. Seth on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Seth to exercise his statutory right. Seth obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Last year we were approach by Mr and Mrs. R García , who took over the lease of a ground floor apartment in Beaconsfield in March 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Beaconsfield with a long lease were in the region of £260,000. The average amount of ground rent was £50 invoiced quarterly. The lease ended in 2097. Taking into account 72 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
Ms Tia Roberts owned a purpose-built apartment in Beaconsfield in February 1999. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Identical homes in Beaconsfield with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 invoiced per annum. The lease ended on 11 March 2077. Considering the 52 years outstanding we calculated the compensation to the landlord for the lease extension to be between £41,800 and £48,400 not including expenses.