The closer a domestic lease in Beaufort nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 125 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in Beaufort will qualify for this right; that being said a lawyer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Beaufort,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Beaufort valuers.
Alexander was the the leasehold proprietor of a 2 bedroom flat in Beaufort being sold with a lease of a little over 59 years left. Alexander informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Alexander to exercise his statutory right. Alexander procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Dr Tia Scott owned a ground floor apartment in Beaufort in May 2010. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Identical flats in Beaufort with a long lease were in the region of £285,000. The average ground rent payable was £45 collected quarterly. The lease elapsed in 2098. Having 72 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.
In 2010 we were e-mailed by Mrs B Lefèvre who, having took over the lease of a ground floor flat in Beaufort in November 2003. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar homes in Beaufort with 100 year plus lease were worth £233,200. The average ground rent payable was £60 billed annually. The lease expired on 20 May 2087. Considering the 61 years remaining we estimated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 plus legals.