Beaminster leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher amount will be payable. Flat owners in Beaminster will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
The conveyancers that we work with handle Beaminster lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of lengthy correspondence with the landlord of her garden flat in Beaminster, Francesca initiated the lease extension process just as her lease was coming close to the all-important 80-year threshold. The legal work was finalised in July 2008. The landlord’s fees were kept to an absolute minimum.
Last year we were contacted by Dr Matthew Laurent , who bought a studio apartment in Beaminster in September 2004. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical residencies in Beaminster with a long lease were worth £166,400. The mid-range ground rent payable was £60 collected monthly. The lease end date was in 2079. Taking into account 54 years unexpired we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including fees.
Last Autumn we were approach by Mrs Madeleine Norbert , who took over the lease of a garden apartment in Beaminster in October 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Beaminster with 100 year plus lease were worth £227,800. The average ground rent payable was £45 billed annually. The lease ran out in 2090. Considering the 65 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.