With a long leasehold premises in Beckermet, you effectively rent 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 consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Residents in Beckermet with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has below eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Beckermet with more than 100 years remaining 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Beckermet 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 lawyer we work with provide it.
Jacob was the the leasehold proprietor of a studio flat in Beckermet on the market with a lease of fraction over fifty eight years outstanding. Jacob informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jacob to exercise his statutory right. Jacob procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were e-mailed by Dr Y François who, having purchased a first floor flat in Beckermet in February 1999. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar flats in Beckermet with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 collected annually. The lease termination date was in 2078. Taking into account 52 years outstanding we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.
Last Autumn we were contacted by Mr and Mrs. U Lee , who acquired a studio flat in Beckermet in November 1998. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Beckermet with a long lease were worth £285,000. The mid-range ground rent payable was £45 collected quarterly. The lease concluded in 2098. Considering the 72 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.