Beaufort residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold properties in Beaufort with more than 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Beaufort,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beaufort valuers.
Two years ago Charlie, came seriously near to the 80-year mark with the lease on his ground floor apartment in Beaufort. Having purchased his property twenty years ago, the length of the lease was of little bearing. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Charlie arranged for a lease extension at the eleventh hour last June. Charlie and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he had missed the deadline, the figure would have become more costly by a minimum £875.
Last month we were approach by Ms B Wood , who was assigned a lease of a one bedroom apartment in Beaufort in February 2011. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar properties in Beaufort with an extended lease were in the region of £243,000. The average amount of ground rent was £65 invoiced every twelve months. The lease finished in 2086. Taking into account 63 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including professional charges.
In 2010 we were contacted by Mr and Mrs. B Bonnet who, having moved into a studio apartment in Beaufort in May 1998. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Beaufort with an extended lease were in the region of £181,600. The average ground rent payable was £55 collected quarterly. The lease came to a finish on 24 November 2075. Given that there were 52 years unexpired we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including fees.