Beaufort leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Beaufort will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Beaufort with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Beaufort,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beaufort valuers.
Harrison owned a conversion apartment in Beaufort on the market with a lease of fraction over 59 years unexpired. Harrison informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harrison to exercise his statutory right. Harrison procured expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2014 we were approached by Mr and Mrs. N Morel who, having bought a studio flat in Beaufort in June 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Beaufort with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease elapsed in 2097. Having 71 years as a residual term we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
Last Winter we were phoned by Mr W Murphy , who acquired a purpose-built apartment in Beaufort in October 1996. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative homes in Beaufort with an extended lease were worth £225,800. The average amount of ground rent was £60 invoiced per annum. The lease ran out on 19 August 2086. Considering the 60 years left we estimated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including professional charges.