With a domestic leasehold premises in Bearsted, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years left. Anyone in Bearsted with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has under eighty years remaining, under the relevant Act the landlord is entitled to calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 Bearsted can be a difficult process. We recommend you get guidance from a conveyancer 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 a wealth of experience procuring Bearsted lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jayden, came perilously near to the eighty-year threshold with the lease on his leasehold apartment in Bearsted. Having purchased his property two decades ago, the lease term was of minimal relevance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Jayden extended the lease at the eleventh hour last May. Jayden and the freeholder via the managing agents ultimately settled on an amount of £5,500 . If the lease had gone lower than eighty years, the premium would have increased by at least £1,075.
Last year we were approach by Ms P Young , who completed a first floor flat in Bearsted in May 2007. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Identical premises in Bearsted with 100 year plus lease were in the region of £193,400. The mid-range amount of ground rent was £65 collected quarterly. The lease finished in 2084. Having 59 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of expenses.
In 2014 we were phoned by Mr and Mrs. K Khan who, having owned a purpose-built apartment in Bearsted in July 1995. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Similar residencies in Bearsted with a long lease were worth £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease expired on 12 May 2095. Taking into account 70 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 exclusive of legals.