Carshalton Beeches leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Carshalton Beeches enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Carshalton Beeches you really ought to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property 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 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; |
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Carshalton Beeches can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Carshalton Beeches lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Harry, came perilously close to the 80-year mark with the lease on his purpose- built apartment in Carshalton Beeches. Having purchased his property two decades ago, the lease term was of no significance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Harry arranged for a lease extension just in the nick of time last July. Harry and the freeholder via the management company subsequently settled on an amount of £5,500 . If he failed to meet the deadline, the price would have increased by a minimum £1,100.
Last Autumn we were approach by Mr A Flores , who bought a first floor flat in Carshalton Beeches in September 1996. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable homes in Carshalton Beeches with 100 year plus lease were in the region of £166,800. The mid-range ground rent payable was £50 invoiced quarterly. The lease concluded in 2076. Considering the 50 years remaining we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Carshalton Beeches premises is 223 Brighton Road in September 2013. The premium payable for the acquisition freehold of the properties should be £10,934 (Ten thousand,nine hundred and thirty four pounds) This case was in relation to 3 flats. The unexpired lease term was 75 years.