Beccles leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Beccles will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Beccles with in excess of one hundred years unexpired on the lease are often referred to as ‘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 upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful correspondence with the freeholder of her basement apartment in Beccles, Abigail initiated the lease extension process as the 80 year deadline was rapidly advancing. The lease extension completed in September 2008. The freeholder’s charges were negotiated to under 550 GBP.
Last Spring we were phoned by Ms Yasmin Alexander , who purchased a studio flat in Beccles in April 1995. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative homes in Beccles with a long lease were valued around £250,000. The average amount of ground rent was £50 billed quarterly. The lease came to a finish on 8 February 2094. Taking into account 69 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Mr and Mrs. F Michel completed a purpose-built apartment in Beccles in March 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar residencies in Beccles with an extended lease were in the region of £290,000. The mid-range ground rent payable was £60 billed monthly. The lease concluded in 2105. Considering the 80 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.