Beaconsfield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly 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 ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Beaconsfield you really ought to check if your lease has between 70 and ninety years remaining. There are good reasons why a Beaconsfield flat owner with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Beaconsfield with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Beaconsfield leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luke owned a studio flat in Beaconsfield being marketed with a lease of a few days over 61 years unexpired. Luke on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Luke to invoke his statutory right. Luke procured expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2011 we were phoned by Mrs U Nelson who, having was assigned a lease of a one bedroom flat in Beaconsfield in August 2004. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar premises in Beaconsfield with an extended lease were valued around £210,600. The mid-range amount of ground rent was £45 invoiced annually. The lease ran out on 11 May 2088. Given that there were 62 years left we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of costs.
Mrs E Morris was assigned a lease of a garden flat in Beaconsfield in October 2011. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Beaconsfield with a long lease were valued about £260,000. The average ground rent payable was £50 billed monthly. The lease concluded in 2099. Taking into account 73 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.