The nearer a residential lease in Beaufort gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Beaufort will meet the qualifying criteria; nevertheless a conveyancer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancers 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 conveyancing solicitor we work with provide it.
In the wake of eight months of protracted negotiations with the freeholder of her garden apartment in Beaufort, Georgina started the lease extension process as the eighty year deadline was rapidly nearing. The legal work was finalised in February 2012. The landlord’s costs were negotiated to under four hundred GBP.
Mr and Mrs. G Green was assigned a lease of a purpose-built flat in Beaufort in April 2007. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Identical flats in Beaufort with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 billed monthly. The lease expired on 18 July 2088. Considering the 63 years as a residual term we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including expenses.
Last August we were e-mailed by Mr P Scott , who owned a basement apartment in Beaufort in January 2003. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Beaufort with an extended lease were valued around £181,600. The average amount of ground rent was £55 collected per annum. The lease finished in 2077. Having 52 years outstanding we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus legals.