Beverley leases on residential deteriorating in value. Where your lease has about ninety 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 begin incurring an additional element called marriage value. Leasehold owners in Beverley will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased 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 want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Dexter owned a high value flat in Beverley on the market with a lease of fraction over 59 years left. Dexter on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert advice and secured an acceptable deal without going to tribunal and sell the property.
Last Summer we were called by Ms Lily Martínez , who owned a studio apartment in Beverley in October 2011. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Beverley with an extended lease were worth £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease came to a finish on 6 June 2095. Considering the 70 years unexpired we approximated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 not including costs.
In 2014 we were called by Mr and Mrs. M Wood who, having bought a first floor apartment in Beverley in July 2006. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar homes in Beverley with an extended lease were in the region of £246,800. The average amount of ground rent was £60 billed per annum. The lease termination date was on 10 August 2075. Taking into account 50 years outstanding we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 not including expenses.