Carshalton Beeches leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most 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 must investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Carshalton Beeches flat owner with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay
Leasehold properties in Carshalton Beeches with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancers that we work with procure Carshalton Beeches 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.
Jake owned a 2 bedroom apartment in Carshalton Beeches on the market with a lease of a few days over fifty eight years remaining. Jake on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jake to exercise his statutory right. Jake procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2011 we were approached by Ms O Murphy who, having bought a one bedroom apartment in Carshalton Beeches in October 1999. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Similar flats in Carshalton Beeches with an extended lease were worth £295,000. The mid-range ground rent payable was £45 collected annually. The lease came to a finish in 2099. Having 74 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
An example of a Freehold Enfranchisement case for a Carshalton Beeches property 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 number of years remaining on the existing lease(s) was 75 years.