Unfortunately that a Beadnell residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Beadnell property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. Most flat owners in Beadnell will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Beadnell,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beadnell valuers.
After protracted correspondence with the landlord of her first floor apartment in Beadnell, Danielle commenced the lease extension process just as the lease was nearing the crucial 80-year threshold. The legal work was finalised in July 2011. The landlord’s fees were kept to an absolute minimum.
In 2014 we were called by Dr Rachael Hill who, having took over the lease of a studio flat in Beadnell in April 2005. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Beadnell with 100 year plus lease were worth £235,200. The average ground rent payable was £45 collected annually. The lease came to a finish in 2091. Having 66 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
Last month we were phoned by Mrs V Robinson , who completed a purpose-built apartment in Beadnell in May 1997. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Beadnell with an extended lease were worth £275,000. The average amount of ground rent was £55 collected yearly. The lease termination date was on 18 March 2102. Taking into account 77 years remaining we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.