Beverley leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Beverley will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Using our service gives 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kian was the the leasehold owner of a 2 bedroom apartment in Beverley on the market with a lease of just over fifty eight years remaining. Kian on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kian to exercise his statutory right. Kian obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2011 we were approached by Dr Rachael Mason who, having completed a first floor apartment in Beverley in November 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar flats in Beverley with an extended lease were valued about £260,000. The average amount of ground rent was £50 billed per annum. The lease terminated on 15 January 2098. Considering the 72 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Ms J Bell was assigned a lease of a studio apartment in Beverley in November 1998. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Beverley with a long lease were in the region of £261,600. The average amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 8 March 2078. Taking into account 52 years unexpired we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus legals.