The value of Beddington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is below than eighty years
Leasehold premises in Beddington with more than one hundred years remaining on the lease are sometimes regarded as a ‘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 buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| HSBC | All Residential leasehold properties must have more than 30 years remaining on the lease beyond the term of the mortgage at the outset. All Buy to Let leasehold properties must have more than 35 years remaining on the lease beyond the term of the mortgage at the outset. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| Santander | Our minimum unexpired lease term is 55 years from completion, subject to at least 30 years remaining at the end of the mortgage term (an individual case instruction may provide for a shorter unexpired term). However, 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 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Beddington,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beddington valuers.
In the wake of eight months of unsuccessful negotiations with the landlord of her basement apartment in Beddington, Ellen commenced the lease extension process just as her lease was coming close to the critical eighty-year deadline. The legal work was finalised in March 2012. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. D Stewart purchased a studio apartment in Beddington in January 2012. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparative flats in Beddington with an extended lease were in the region of £285,000. The average amount of ground rent was £55 invoiced monthly. The lease lapsed on 17 September 2098. Taking into account 79 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
An example of a Lease Extension matter before the tribunal 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 remaining number of years on the lease was 69.46 years.