Bestwood leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Bestwood will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Bestwood with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Bestwood,the lease extension solicitors 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 Bestwood valuers.
Subsequent to lengthy negotiations with the freeholder of her purpose-built flat in Bestwood, Madeleine started the lease extension process just as the lease was coming close to the all-important 80-year threshold. The transaction completed in October 2015. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were phoned by Mr T Adams who, having was assigned a lease of a purpose-built apartment in Bestwood in February 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Bestwood with 100 year plus lease were worth £265,000. The average ground rent payable was £50 billed monthly. The lease came to a finish on 8 March 2099. Having 73 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
In 2012 we were called by Mr D François who, having purchased a basement apartment in Bestwood in June 2008. The question was if we could estimate the premium could be for a ninety year lease extension. Similar homes in Bestwood with 100 year plus lease were worth £264,000. The average ground rent payable was £60 billed quarterly. The lease came to a finish in 2079. Having 53 years left we estimated the premium to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of expenses.