It’s a harsh certainty that a Beaufort residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Beaufort property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Beaufort will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Santander | |
| The Mortgage Works |
Lease extensions in Beaufort can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Beaufort lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Noah, came precariously close to the eighty-year threshold with the lease on his purpose- built flat in Beaufort. In buying his home two decades ago, the unexpired term was of no importance. by good luck, he realised he would soon be paying an inflated amount for a lease extension. Noah was able to extend his lease just under the wire last May. Noah and the freeholder eventually settled on sum of £6,000 . If he had missed the deadline, the premium would have escalated by a minimum £1,075.
Mrs Emily White was assigned a lease of a one bedroom flat in Beaufort in November 2008. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable properties in Beaufort with a long lease were worth £200,000. The average amount of ground rent was £50 invoiced annually. The lease concluded in 2103. Given that there were 77 years left we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
Last month we were e-mailed by Dr Harriet Howard , who was assigned a lease of a studio flat in Beaufort in October 1996. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparative residencies in Beaufort with a long lease were worth £260,200. The mid-range ground rent payable was £65 collected annually. The lease ran out on 11 May 2092. Given that there were 66 years unexpired we estimated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of expenses.