The re-sale value of a leasehold property in Beaworthy depends on how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed prior to the eighty year threshold. Current legislation enables Beaworthy qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| TSB |
The conveyancing solicitors that we work with procure Beaworthy lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of protracted correspondence with the freeholder of her purpose-built apartment in Beaworthy, Madeleine started the lease extension process just as her lease was coming close to the critical 80-year mark. The transaction completed in July 2005. The freeholder’s fees were restricted to approximately 650 GBP.
In 2012 we were approached by Mr and Mrs. W Moreau who, having was assigned a lease of a studio apartment in Beaworthy in March 2012. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparative residencies in Beaworthy with 100 year plus lease were worth £173,800. The mid-range amount of ground rent was £60 billed annually. The lease expired in 2081. Considering the 55 years unexpired we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus legals.
Last Christmas we were called by Mr and Mrs. I Collins , who moved into a ground floor flat in Beaworthy in April 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Beaworthy with a long lease were valued about £235,200. The average amount of ground rent was £45 collected annually. The lease elapsed on 7 November 2092. Having 66 years remaining we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.