Top reasons for Beaminster lease extension

Top reasons for lease extension now:

Increase your lease and increase your Beaminster property value

Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Beaminster. Inevitably, the term of lease left reduces as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Beaminster have the right to extend the lease for a further ninety years in accordance with legislation. Please give careful consideration before putting off your Beaminster lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease

Beaminster property with a lease extension is almost the same value as a freehold

Leasehold premises in Beaminster with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Lending institutions will not loan monies on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Beaminster lease extension solicitors or enfranchisement solicitors

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.

Beaminster Lease Extension Case Summaries:

Jade, Beaminster, Dorset,

Off the back of unsuccessful negotiations with the landlord of her ground floor apartment in Beaminster, Jade commenced the lease extension process just as the lease was nearing the critical eighty-year deadline. The transaction was concluded in March 2011. The landlord’s costs were negotiated to under six hundred pounds.

Beaminster case:

Mrs Chantelle Bennett was assigned a lease of a garden apartment in Beaminster in March 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Beaminster with 100 year plus lease were valued around £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease terminated in 2101. Taking into account 75 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.

Beaminster case:

Last Christmas we were called by Mrs Ella Ramírez , who bought a basement apartment in Beaminster in July 2009. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Beaminster with an extended lease were worth £173,800. The average amount of ground rent was £60 collected yearly. The lease termination date was in 2081. Having 55 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.