With a residential leasehold property in Beaufort, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should 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 gets disproportionately more expensive notably once there are less than 80 years remaining. Residents in Beaufort with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has fewer than 80 years outstanding, under the current Act the freeholder can calculate and demand a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Beaufort can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Beaufort lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander owned a studio flat in Beaufort on the market with a lease of a few days over 59 years unexpired. Alexander on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were contacted by Mr G Howard who, having moved into a one bedroom flat in Beaufort in November 2010. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar premises in Beaufort with an extended lease were valued about £191,400. The average amount of ground rent was £55 collected monthly. The lease expired on 20 June 2080. Having 54 years unexpired we calculated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including expenses.
Mr and Mrs. A Edwards bought a studio flat in Beaufort in March 2007. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparable properties in Beaufort with a long lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed in 2100. Taking into account 74 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.