As the length of the unexpired term of a Beacontree Heath domestic lease diminished so does its value and therefore the value of your property. If the lease has, more than 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner than later. The majority of flat owners in Beacontree Heath will qualify for this right; nevertheless a conveyancing solicitor can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Beacontree Heath leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Hunter, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Beacontree Heath. In buying his flat 18 years previously, the lease term was of little relevance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Hunter extended the lease just under the wire in January. Hunter and the freeholder via the management company eventually agreed on an amount of £6,000 . If he not met the deadline, the price would have increased by at least £1,125.
In 2011 we were phoned by Mr U Brown who, having owned a garden apartment in Beacontree Heath in July 2005. The question was if we could estimate the premium could be for a 90 year extension to my lease. Identical residencies in Beacontree Heath with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed yearly. The lease elapsed on 28 March 2101. Given that there were 76 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Beacontree Heath residence is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case related to 1 flat. The unexpired lease term was 61.36 years.