The nearer a residential lease in Bearsted nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Bearsted will qualify for this right; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Bearsted,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bearsted valuers.
Subsequent to lengthy negotiations with the freeholder of her garden flat in Bearsted, Isabel commenced the lease extension process just as the lease was coming close to the all-important eighty-year mark. The lease extension completed in November 2014. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were called by Ms Mollie Evans , who owned a purpose-built flat in Bearsted in November 1995. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative homes in Bearsted with an extended lease were valued about £166,400. The mid-range amount of ground rent was £60 collected monthly. The lease ended on 3 July 2080. Considering the 54 years unexpired we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.
In 2013 we were contacted by Mrs U White who, having moved into a first floor flat in Bearsted in January 2001. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar homes in Bearsted with an extended lease were worth £227,800. The average amount of ground rent was £45 collected annually. The lease ended in 2091. Having 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.