As the length of the unexpired term of a Beddau domestic lease lessens so does its value and therefore the value of your property. If the lease has, over 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner as opposed to later. Most flat owners in Beddau will qualify for this right; however a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Beddau with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Beddau,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beddau valuers.
Aiden owned a 2 bedroom apartment in Beddau being marketed with a lease of just over 59 years remaining. Aiden informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Aiden to invoke his statutory right. Aiden obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last February we were contacted by Ms Amber Clarke , who completed a garden flat in Beddau in March 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Identical properties in Beddau with a long lease were worth £280,000. The average ground rent payable was £45 billed quarterly. The lease came to a finish in 2094. Considering the 69 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
Last Winter we were approach by Mr Teddy Carter , who acquired a one bedroom flat in Beddau in April 2008. We are asked if we could approximate the premium could be to extend the lease by 90 years. Identical premises in Beddau with an extended lease were valued about £216,000. The average amount of ground rent was £60 billed per annum. The lease lapsed on 28 August 2083. Given that there were 58 years left we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus expenses.