With a domestic leasehold premises in Beverley, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Anyone in Beverley with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has less than 80 years left, under the relevant legislation the freeholder is entitled to calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Beverley with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Beverley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Beverley valuers.
Subsequent to unsuccessful correspondence with the landlord of her two bedroom flat in Beverley, Isabel started the lease extension process just as the lease was coming close to the critical 80-year mark. The transaction completed in February 2014. The landlord’s fees were negotiated to under 450 GBP.
Last July we were e-mailed by Dr G Leroy , who purchased a ground floor apartment in Beverley in January 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Beverley with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished in 2094. Considering the 68 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
Mr Jamie Sharif completed a garden apartment in Beverley in September 2011. The question was if we could approximate the price could be to prolong the lease by 90 years. Comparable residencies in Beverley with 100 year plus lease were valued around £285,000. The average amount of ground rent was £55 collected quarterly. The lease lapsed on 13 January 2105. Taking into account 79 years unexpired we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.