With a residential leasehold premises in Beddington, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Leasehold owners in Beddington with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has below eighty years remaining, under the current legislation the landlord is entitled to calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Beddington with in excess of 100 years left on the lease are sometimes 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 buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Retaining our service gives you enhanced control over the value of your Beddington leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Sebastian, came dangerously near to the 80-year mark with the lease on his one bedroom apartment in Beddington. Having purchased his flat two decades ago, the lease term was of no significance. As luck would have it, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Sebastian arranged for a lease extension at the eleventh hour last August. Sebastian and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If the lease had gone below eighty years, the price would have gone up by a minimum £900.
In 2012 we were called by Dr Imogen Wright who, having was assigned a lease of a newly refurbished apartment in Beddington in August 2005. The question was if we could estimate the price would likely be to extend the lease by 90 years. Similar residencies in Beddington with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £60 invoiced annually. The lease termination date was on 18 March 2106. Having 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
An example of a Lease Extension decision for a Beddington premises 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.