Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Beverley. Inevitably, the period of lease left reduces over time. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Beverley have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give careful deliberation before putting off your Beverley lease extension. Holding off the cost now only increases the price you will eventually incur for a lease extension
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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 also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Beverley leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Eliot owned a studio apartment in Beverley on the market with a lease of a little over sixty years left. Eliot informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Eliot to exercise his statutory right. Eliot procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. H Ramírez was assigned a lease of a newly refurbished apartment in Beverley in July 2009. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Comparative flats in Beverley with an extended lease were worth £275,000. The average amount of ground rent was £55 billed monthly. The lease ended on 2 June 2102. Given that there were 77 years remaining we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
In 2013 we were called by Mr T Patel who, having completed a purpose-built apartment in Beverley in July 2010. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Beverley with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed yearly. The lease concluded on 9 October 2082. Having 57 years remaining we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.