As the the remaining lease term of a Beddington domestic lease lessens so does its value and therefore the value of your property. If the lease has, over one hundred years to run then this decrease may be of little impact however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. Many flat owners in Beddington will meet the qualifying criteria; nevertheless a conveyancer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Beddington can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Beddington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her one bedroom apartment in Beddington, Lucy started the lease extension process just as the lease was coming close to the critical eighty-year threshold. The lease extension completed in February 2010. The freeholder’s fees were restricted to approximately 450 GBP.
In 2013 we were contacted by Dr L Roux who, having owned a newly refurbished flat in Beddington in August 2006. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Beddington with a long lease were in the region of £270,000. The average amount of ground rent was £55 invoiced per annum. The lease ran out in 2101. Considering the 75 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
An example of a Lease Extension matter before the tribunal for a Beddington property 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 affected 1 flat. The unexpired residue of the current lease was 69.46 years.