The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Beddington have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Please think carefully before delaying your Beddington lease extension. Putting off the costs today simply escalates the premium you will eventually have to pay to extend the lease.
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 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Beddington,the lease extension experts 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 Beddington valuers.
Eli was the the leasehold proprietor of a high value apartment in Beddington on the market with a lease of just over 72 years outstanding. Eli informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Eli to exercise his statutory right. Eli obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2010 we were e-mailed by Mr and Mrs. B Anderson who, having took over the lease of a garden apartment in Beddington in July 1998. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparative homes in Beddington with an extended lease were worth £198,400. The mid-range ground rent payable was £65 invoiced every twelve months. The lease finished on 28 July 2084. Taking into account 59 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of expenses.
An example of a Lease Extension decision for a Beddington flat 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 was in relation to 1 flat. The unexpired term was 69.46 years.