The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Beeston can extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Beeston lease extension. Putting off the costs today simply escalates the price you will eventually have to pay to extend the lease.
Leasehold properties in Beeston with more than one hundred years outstanding 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | 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 However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis 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. |
| 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. |
The lawyers that we work with undertake Beeston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of protracted correspondence with the landlord of her purpose-built apartment in Beeston, Lucy commenced the lease extension process as the 80 year mark was fast approaching. The lease extension was concluded in July 2013. The landlord’s fees were negotiated to slightly above 600 pounds.
Last Spring we were phoned by Dr Rory Ramírez , who acquired a first floor flat in Beeston in July 2012. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparable homes in Beeston with an extended lease were in the region of £225,400. The average ground rent payable was £45 billed annually. The lease came to a finish in 2089. Considering the 64 years left we estimated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 plus legals.
Mrs Anna Davies owned a one bedroom flat in Beeston in September 2003. The question was if we could approximate the premium would be for a ninety year lease extension. Comparative homes in Beeston with 100 year plus lease were valued about £270,000. The average ground rent payable was £55 invoiced monthly. The lease ended on 21 January 2100. Given that there were 75 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.