Chances are that where you own a flat in Beaminster you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Beaminster leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alex owned a high value apartment in Beaminster being marketed with a lease of fraction over 59 years remaining. Alex on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alex to invoke his statutory right. Alex procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2013 we were called by Mrs Erin Peterson who, having completed a garden flat in Beaminster in July 1996. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable premises in Beaminster with an extended lease were valued around £225,400. The mid-range amount of ground rent was £45 billed per annum. The lease termination date was in 2090. Given that there were 64 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of fees.
In 2012 we were called by Mr John Leroy who, having moved into a first floor apartment in Beaminster in November 1999. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar properties in Beaminster with an extended lease were valued around £270,000. The average amount of ground rent was £55 collected every twelve months. The lease terminated in 2101. Taking into account 75 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.