Beaminster leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Beaminster enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Beaminster you really ought to see if your lease has between seventy and 90 years left. There are compelling reasons why a Beaminster flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Beaminster with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Beaminster can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Beaminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful negotiations with the landlord of her first floor apartment in Beaminster, Charlotte started the lease extension process as the eighty year mark was fast nearing. The lease extension completed in October 2008. The freeholder’s charges were restricted to about 700 GBP.
Last July we were contacted by Mr and Mrs. B Bernard , who took over the lease of a purpose-built apartment in Beaminster in August 2005. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Comparative homes in Beaminster with 100 year plus lease were worth £173,800. The mid-range ground rent payable was £60 collected monthly. The lease lapsed in 2081. Having 55 years left we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.
In 2014 we were approached by Ms Sian Murphy who, having bought a garden flat in Beaminster in March 2000. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable flats in Beaminster with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 billed every twelve months. The lease finished in 2092. Having 66 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.