Top reasons for Beverley lease extension

Why you should start your Beverley lease extension today:

A Beverley lease depreciates with the years remaining on the lease.

With a residential leasehold property in Beverley, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are less than eighty years remaining. Anyone in Beverley with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has below eighty years outstanding, under the current Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.

Beverley property with a lease extension has roughly the same value as a freehold

Leasehold properties in Beverley with over 100 years outstanding on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may decide not to grant a mortgage on a short lease

Many mortgage lenders will not grant a mortgage on a lease with less than seventy years left to run - although this varies between mortgage companies. A buyer will likely find it difficult to obtain a mortgage and this could result in your Beverley property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Beverley lease extensions?

The conveyancers that we work with procure Beverley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Beverley Lease Extension Example Cases:

Max, Beverley, East Yorkshire

Last October Max, came dangerously close to the eighty-year mark with the lease on his basement flat in Beverley. Having purchased his flat twenty years previously, the unexpired term was of no interest. Thankfully, he recognised he needed to take action soon on Extending the lease. Max extended the lease just under the wire last June. Max and the landlord ultimately settled on the final figure of £5,500 . If the lease had slipped to less than eighty years, the amount would have increased by a minimum £925.

Beverley case:

In 2012 we were phoned by Mr Samuel Thompson who, having acquired a studio apartment in Beverley in June 2001. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparable properties in Beverley with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease elapsed on 9 February 2105. Taking into account 79 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.

Beverley case:

Mr and Mrs. M Jones completed a studio flat in Beverley in October 2002. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Beverley with 100 year plus lease were worth £193,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease elapsed on 11 May 2085. Considering the 59 years outstanding we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.