Unfortunately that a Beckenham residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Beckenham property market.Where your lease has approximately ninety years left, you should start thinking about 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 below eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Beckenham will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Beckenham 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.
In 2014 Jonathan, came critically close to the eighty-year threshold with the lease on his studio flat in Beckenham. Having bought his flat two decades ago, the unexpired term was of no interest. by good luck, he recognised he would imminently be paying way over the odds for Extending the lease. Jonathan extended the lease at the eleventh hour last May. Jonathan and the landlord eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £1,050.
Ms Chelsea Jones purchased a first floor flat in Beckenham in November 2005. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable flats in Beckenham with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced annually. The lease expiry date was in 2096. Given that there were 70 years outstanding we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Beckenham property is 26 Manor Road in July 2010. the Tribunal decided that price to be paid for the freehold was £12,420 This case related to 2 flats. The number of years remaining on the existing lease(s) was 76.75 and 88.83.