The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Bearsted can extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Bearsted lease extension. Shelving that expense today simply increases the premium you will eventually be required to pay to extend the lease.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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. |
| 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 Bearsted can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor 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 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.
In 2014 Kian, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Bearsted. Having purchased his flat 18 years ago, the lease term was of minimal significance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Kian extended the lease just under the wire last September. Kian and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If he had missed the deadline, the sum would have become more costly by a minimum £1,025.
In 2014 we were contacted by Mr and Mrs. C Smith who, having owned a one bedroom apartment in Bearsted in February 2003. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparative flats in Bearsted with a long lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease ended in 2083. Given that there were 57 years unexpired we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus expenses.
In 2009 we were approached by Mr and Mrs. B Bailey who, having moved into a purpose-built flat in Bearsted in January 2000. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Bearsted with an extended lease were valued about £245,000. The average amount of ground rent was £50 collected yearly. The lease ran out in 2094. Considering the 68 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.