As the the remaining lease term of a Carshalton Beeches residential lease diminished so does its value and therefore the value of your property. If the lease has, in excess of 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Carshalton Beeches will meet the qualifying criteria; however a conveyancer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a landlord in Carshalton Beeches,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Carshalton Beeches valuers.
Ryan owned a studio apartment in Carshalton Beeches being marketed with a lease of just over sixty years left. Ryan on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last Spring we were e-mailed by Dr Eliot Reed , who completed a ground floor apartment in Carshalton Beeches in April 1998. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Carshalton Beeches with a long lease were valued around £235,600. The average amount of ground rent was £60 billed per annum. The lease ended in 2087. Given that there were 62 years left we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including 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 related to 3 flats. The unexpired term as at the valuation date was 75 years.