Beverley leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher premium will be due. Flat owners in Beverley will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold premises in Beverley with in excess of 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 freehold unless savings on ground rent and maintenance charges justify it.
|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;
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|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.|
|Leeds Building Society||85 years remaining from the start of the mortgage.|
|Lloyds TSB Scotland||Minimum 70 years from the date of the mortgage.|
Using our service will provide you enhanced control over the value of your Beverley leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aiden owned a studio flat in Beverley being marketed with a lease of a few days over sixty years unexpired. Aiden informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Aiden to invoke his statutory right. Aiden procured expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2013 we were contacted by Mr and Mrs. L Wilson who, having purchased a first floor apartment in Beverley in August 1995. We are asked if we could estimate the price could be for a ninety year lease extension. Similar properties in Beverley with 100 year plus lease were valued around £250,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed on 11 May 2091. Taking into account 68 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
Last Winter we were approach by Dr Leon Howard , who purchased a basement apartment in Beverley in August 1998. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Beverley with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 billed quarterly. The lease finished on 22 July 2102. Taking into account 79 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.