For those whose New Beckenham home is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in New Beckenham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with New Beckenham valuers.
In 2014 Charlie, came very close to the eighty-year mark with the lease on his ground floor flat in New Beckenham. In buying his property 19 years previously, the lease term was of no interest. by good luck, he recognised he would soon be paying an inflated amount for a lease extension. Charlie arranged for a lease extension at the eleventh hour in September. Charlie and the freeholder via the management company in the end settled on a premium of £5,000 . If the lease had dropped below 80 years, the amount would have escalated by a minimum £1,100.
In 2014 we were contacted by Mr and Mrs. J Rodríguez who, having acquired a basement flat in New Beckenham in November 2005. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparable flats in New Beckenham with a long lease were valued around £267,600. The average amount of ground rent was £65 invoiced monthly. The lease termination date was on 17 August 2093. Considering the 67 years remaining we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of legals.
An example of a Freehold Enfranchisement case for a New Beckenham premises is 26 Manor Road in July 2010. the Tribunal decided that price to be paid for the freehold was £12,420 This case related to 2 flats. The unexpired term was 76.75 and 88.83.