Beaconsfield leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Beaconsfield will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Beaconsfield with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Engaging our service will provide you increased control over the value of your Beaconsfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Daniel, came dangerously close to the 80-year mark with the lease on his ground floor flat in Beaconsfield. In buying his property 18 years ago, the lease term was of minimal concern. Thankfully, he recognised he would imminently be paying an escalated premium for Extending the lease. Daniel arranged for a lease extension at the eleventh hour last January. Daniel and the freeholder subsequently agreed on a premium of £5,500 . If the lease had dipped below eighty years, the price would have increased by at least £925.
Last Autumn we were called by Mr and Mrs. D Díaz , who owned a one bedroom apartment in Beaconsfield in September 1998. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Comparative flats in Beaconsfield with a long lease were worth £245,000. The average ground rent payable was £45 billed annually. The lease elapsed in 2094. Having 68 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2014 we were phoned by Mr and Mrs. M Morgan who, having bought a ground floor apartment in Beaconsfield in October 2008. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar homes in Beaconsfield with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 billed monthly. The lease concluded on 28 February 2105. Considering the 79 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.