With a residential leasehold property in Beaufort, you are actually buying a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are fewer than 80 years left. Leasehold owners in Beaufort with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has under eighty years left, under the relevant statute the landlord is entitled to calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Beaufort with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Beaufort leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Isaac was the the leasehold proprietor of a conversion apartment in Beaufort on the market with a lease of a few days over 61 years left. Isaac on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last year we were contacted by Mr Milo Hernández , who moved into a studio apartment in Beaufort in April 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Beaufort with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 collected yearly. The lease lapsed in 2090. Having 64 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 not including professional charges.
Mr Archie Wilson purchased a basement flat in Beaufort in August 2010. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Beaufort with an extended lease were worth £189,000. The average ground rent payable was £55 invoiced yearly. The lease came to a finish in 2079. Taking into account 53 years unexpired we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.