As the length of the unexpired term of a Bearsted residential lease decreases so does its value and therefore the value of your property. If the lease has, over one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Bearsted will meet the qualifying criteria; however a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Bearsted with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The lawyers that we work with procure Bearsted 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.
Trailing unsuccessful negotiations with the landlord of her one bedroom flat in Bearsted, Chantelle commenced the lease extension process as the eighty year threshold was quickly approaching. The legal work was concluded in August 2012. The landlord’s charges were restricted to under 700 pounds.
Mr and Mrs. F Thompson owned a garden apartment in Bearsted in July 2001. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Similar premises in Bearsted with a long lease were valued around £250,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed in 2095. Considering the 69 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
Dr Mason Mercier was assigned a lease of a garden apartment in Bearsted in April 1998. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparable properties in Bearsted with 100 year plus lease were valued about £285,000. The average amount of ground rent was £55 billed per annum. The lease finished in 2106. Considering the 80 years outstanding we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.