Chances are that if you own a flat in Beaufort you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
In 2014 Stanley, came critically near to the 80-year threshold with the lease on his two bedroom flat in Beaufort. Having bought his home two decades ago, the lease term was of no bearing. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Stanley arranged for a lease extension just in the nick of time last July. Stanley and the freeholder via the management company in the end settled on sum of £5,000 . If the lease had dropped below eighty years, the amount would have escalated by at least £975.
Last Christmas we were called by Mr and Mrs. Y Bonnet , who was assigned a lease of a purpose-built flat in Beaufort in September 1995. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparable properties in Beaufort with 100 year plus lease were valued about £205,000. The average ground rent payable was £50 billed yearly. The lease terminated in 2105. Given that there were 79 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
In 2009 we were phoned by Mr Samuel Green who, having completed a one bedroom apartment in Beaufort in April 2007. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Beaufort with an extended lease were in the region of £275,000. The average amount of ground rent was £65 billed monthly. The lease lapsed in 2094. Considering the 68 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.