There is no doubt about it a leasehold property in Beaworthy is a wasting asset as a result of the diminishing lease term. Where the lease has, over 100 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Beaworthy will meet the qualifying criteria; however a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Beaworthy leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her ground floor flat in Beaworthy, Rebecca commenced the lease extension process as the 80 year mark was rapidly approaching. The lease extension was concluded in August 2010. The landlord’s fees were kept to an absolute minimum.
Mr Evan Adams completed a purpose-built flat in Beaworthy in March 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Beaworthy with a long lease were valued about £255,000. The average amount of ground rent was £50 billed annually. The lease came to a finish in 2095. Having 71 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
In 2009 we were phoned by Dr B Gunderson who, having was assigned a lease of a basement apartment in Beaworthy in January 2009. The question was if we could approximate the price could be to extend the lease by a further 90 years. Comparable premises in Beaworthy with an extended lease were worth £249,200. The average ground rent payable was £60 collected per annum. The lease expired on 9 July 2075. Having 51 years left we estimated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 not including expenses.