Beaminster leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher premium will be payable. Leasehold owners in Beaminster will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Beaminster with in excess of 100 years remaining 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 freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Beaminster,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 Beaminster valuers.
Michael owned a 2 bedroom apartment in Beaminster being marketed with a lease of a little over fifty eight years outstanding. Michael informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Michael to invoke his statutory right. Michael procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
In 2011 we were approached by Dr B David who, having took over the lease of a first floor apartment in Beaminster in November 2006. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Similar residencies in Beaminster with 100 year plus lease were worth £261,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease terminated on 14 September 2078. Considering the 52 years left we estimated the premium to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of fees.
In 2010 we were contacted by Mr Y King who, having bought a one bedroom flat in Beaminster in February 2001. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Similar properties in Beaminster with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed annually. The lease terminated on 12 November 2089. Considering the 63 years remaining we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including legals.