Unfortunately that a Beccles residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Beccles property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be payable. The majority of flat owners in Beccles will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Beccles with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The lawyers that we work with undertake Beccles 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 lawyer we work with provide it.
In the wake of eight months of protracted negotiations with the freeholder of her one bedroom apartment in Beccles, Elizabeth started the lease extension process as the eighty year mark was fast advancing. The transaction completed in February 2008. The landlord’s costs were negotiated to slightly above 550 GBP.
In 2009 we were called by Mr and Mrs. V James who, having owned a first floor flat in Beccles in June 1995. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical residencies in Beccles with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 collected annually. The lease expired in 2090. Given that there were 64 years outstanding we estimated the premium to the landlord for the lease extension to be between £15,200 and £17,600 not including fees.
In 2013 we were contacted by Mr Dylan Garcia who, having completed a garden flat in Beccles in September 1995. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable homes in Beccles with a long lease were valued about £270,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ended on 26 October 2101. Given that there were 75 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.