Beaminster residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold premises in Beaminster with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Beaminster can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Beaminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy negotiations with the freeholder of her garden apartment in Beaminster, Ella started the lease extension process just as the lease was nearing the crucial eighty-year deadline. The lease extension completed in April 2015. The landlord’s charges were kept to an absolute minimum.
Ms R David purchased a first floor apartment in Beaminster in February 2011. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparable properties in Beaminster with a long lease were in the region of £254,200. The average amount of ground rent was £60 billed monthly. The lease finished on 25 November 2075. Given that there were 51 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 not including professional charges.
In 2012 we were e-mailed by Dr Hunter Walker who, having bought a first floor flat in Beaminster in October 2000. We are asked if we could estimate the price could be to prolong the lease by ninety years. Similar properties in Beaminster with an extended lease were valued around £210,600. The mid-range amount of ground rent was £45 collected annually. The lease elapsed on 8 October 2086. Taking into account 62 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 not including professional charges.