Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Beckenham. Inevitably, the term of lease left reduces over time. This is often overlooked and only becomes a problem when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Beckenham have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give due deliberation before putting off your Beckenham lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank |
Irrespective of whether you are a tenant or a freeholder in Beckenham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Beckenham valuers.
Hugo owned a conversion apartment in Beckenham on the market with a lease of fraction over 61 years left. Hugo on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mrs M Dupont completed a first floor apartment in Beckenham in May 2010. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative properties in Beckenham with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 collected annually. The lease ran out on 9 October 2089. Having 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of expenses.
An example of a Freehold Enfranchisement case 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 related to 2 flats. The unexpired term as at the valuation date was 76.75 and 88.83.