The re-sale value of a leasehold property in Beckenham is impacted by how long the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised in advance of the 80 year mark. Current legislation enables Beckenham qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Beckenham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her studio apartment in Beckenham, Isabella initiated the lease extension process as the 80 year threshold was swiftly advancing. The transaction was finalised in February 2012. The landlord’s fees were kept to an absolute minimum.
Last Christmas we were contacted by Dr Harrison Peterson , who bought a garden flat in Beckenham in October 1995. The question was if we could approximate the premium would be to prolong the lease by ninety years. Similar residencies in Beckenham with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease lapsed in 2092. Considering the 67 years unexpired we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Beckenham flat is 26 Manor Road in July 2010. the Tribunal decided that price to be paid for the freehold was £12,420 This case affected 2 flats. The unexpired term as at the valuation date was 76.75 and 88.83.