Beaumaris leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Beaumaris tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Beaumaris you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Beaumaris flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Beaumaris lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to unsuccessful correspondence with the landlord of her basement apartment in Beaumaris, Jessica initiated the lease extension process just as her lease was nearing the crucial 80-year threshold. The lease extension was finalised in August 2007. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were called by Mr and Mrs. N Fournier , who owned a ground floor flat in Beaumaris in March 2004. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Beaumaris with an extended lease were valued about £285,000. The average ground rent payable was £55 invoiced annually. The lease came to a finish on 21 May 2105. Given that there were 79 years left we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.
In 2012 we were phoned by Mr Evan Davis who, having took over the lease of a first floor apartment in Beaumaris in May 2009. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Beaumaris with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 billed yearly. The lease lapsed in 2085. Given that there were 59 years left we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of fees.