Beddington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Beddington residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Beddington you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Beddington leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Theo was the the leasehold proprietor of a 2 bedroom apartment in Beddington being marketed with a lease of a little over fifty eight years left. Theo on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the flat.
Ms Emma Flores completed a newly refurbished apartment in Beddington in May 1998. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Beddington with 100 year plus lease were in the region of £183,600. The mid-range ground rent payable was £65 collected quarterly. The lease concluded in 2083. Given that there were 57 years unexpired we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.
An example of a Lease Extension decision for a Beddington residence is Ground Floor Flat 14 Lodge Road in October 2013. the tribunal held that the price payable for the acquisition of the extended lease of the property should be £12,590 .00 This case related to 1 flat. The number of years remaining on the existing lease(s) was 69.46 years.