With a residential leasehold property in Beckenham, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years remaining. Leasehold owners in Beckenham with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has under 80 years outstanding, under the current legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Beckenham with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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.
Blake owned a high value apartment in Beckenham on the market with a lease of fraction over fifty eight years remaining. Blake informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. V Murphy owned a one bedroom flat in Beckenham in January 2007. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable premises in Beckenham with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 billed annually. The lease expired in 2106. Considering the 80 years left we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 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 affected 2 flats. The number of years remaining on the existing lease(s) was 76.75 and 88.83.