As the length of the unexpired term of a Beverley residential lease decreases so does its value and therefore the value of your property. If the lease has, over 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner than later. Most flat owners in Beverley will meet the qualifying criteria; that being said a lawyer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Beverley can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Beverley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix owned a 2 bedroom flat in Beverley on the market with a lease of fraction over 72 years outstanding. Felix on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr M Campbell purchased a one bedroom apartment in Beverley in June 2006. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable residencies in Beverley with an extended lease were worth £227,800. The mid-range amount of ground rent was £45 collected annually. The lease ended in 2090. Having 65 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Mr Oliver Laurent bought a first floor flat in Beverley in August 2012. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative flats in Beverley with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease ended on 13 September 2101. Considering the 76 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.