There is no doubt about it a leasehold flat or house in Beaufort is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. Most flat owners in Beaufort will qualify for this right; nevertheless a lawyer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, 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. |
| 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Beaufort can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Beaufort lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jackson, started to get close to the 80-year mark with the lease on his two bedroom flat in Beaufort. Having purchased his home two decades ago, the unexpired term was of little importance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Jackson arranged for a lease extension at the eleventh hour last January. Jackson and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If he had missed the deadline, the price would have escalated by at least £1,025.
Last Christmas we were approach by Dr Tommy David , who owned a first floor flat in Beaufort in March 2004. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Identical properties in Beaufort with an extended lease were valued around £166,800. The average ground rent payable was £50 invoiced yearly. The lease ended in 2075. Having 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.
Mr and Mrs. A François purchased a newly refurbished flat in Beaufort in June 1999. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar flats in Beaufort with a long lease were worth £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded on 24 November 2095. Taking into account 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.