Beaufort leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Beaufort will usually qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Beaufort 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.
After unsuccessful negotiations with the landlord of her garden apartment in Beaufort, Chelsea started the lease extension process just as the lease was nearing the crucial 80-year threshold. The legal work completed in August 2014. The freeholder’s charges were restricted to a tad over 550 pounds.
In 2014 we were contacted by Mr N Parker who, having took over the lease of a recently refurbished apartment in Beaufort in July 1999. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparative flats in Beaufort with an extended lease were worth £189,000. The average ground rent payable was £55 billed per annum. The lease came to a finish in 2079. Having 53 years outstanding we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.
In 2012 we were e-mailed by Mr and Mrs. E Turner who, having took over the lease of a first floor flat in Beaufort in March 2001. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Beaufort with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 collected per annum. The lease expired on 18 April 2099. Taking into account 73 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.