On the balance of probabilities if you own a flat in Beaminster you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Beaminster leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ethan was the the leasehold proprietor of a high value apartment in Beaminster on the market with a lease of fraction over 72 years outstanding. Ethan informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Mr Matthew Rivera owned a studio flat in Beaminster in February 2001. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable homes in Beaminster with 100 year plus lease were valued around £173,800. The mid-range amount of ground rent was £60 collected quarterly. The lease end date was on 27 August 2080. Given that there were 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
Dr B Cox owned a first floor apartment in Beaminster in November 2003. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative homes in Beaminster with 100 year plus lease were valued around £235,200. The average amount of ground rent was £45 invoiced annually. The lease ended on 22 May 2091. Given that there were 66 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.