The only way is down when it comes to Beeston lease terms. Beeston flats that have a lease term fewer than eighty years will drop in value even faster, and the cost to extend your lease will rise.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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.
Ben owned a high value flat in Beeston on the market with a lease of fraction over 59 years unexpired. Ben informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ben to exercise his statutory right. Ben procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr Freddie Bailey bought a one bedroom flat in Beeston in August 2008. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable flats in Beeston with 100 year plus lease were valued around £210,600. The average amount of ground rent was £45 invoiced per annum. The lease finished on 8 April 2088. Taking into account 62 years left we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including legals.
Mr V Green owned a recently refurbished flat in Beeston in September 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Similar properties in Beeston with an extended lease were valued around £265,000. The average ground rent payable was £50 collected annually. The lease ended in 2099. Considering the 73 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.