With a long leasehold premises in Beaconsfield, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Anyone in Beaconsfield with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has under eighty years outstanding, under the relevant statute the landlord is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Beaconsfield with more than one hundred years unexpired 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Beaconsfield leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Toby was the the leasehold proprietor of a conversion flat in Beaconsfield on the market with a lease of just over sixty years remaining. Toby informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Toby to exercise his statutory right. Toby procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Winter we were contacted by Mr and Mrs. P Ricardo , who was assigned a lease of a garden apartment in Beaconsfield in September 2001. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Beaconsfield with 100 year plus lease were valued about £176,200. The average ground rent payable was £65 collected every twelve months. The lease lapsed on 19 July 2081. Having 56 years unexpired we calculated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including expenses.
Mr and Mrs. D Lefebvre owned a basement flat in Beaconsfield in May 1995. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Beaconsfield with an extended lease were in the region of £237,600. The mid-range ground rent payable was £45 invoiced annually. The lease finished in 2092. Considering the 67 years remaining we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus expenses.