The market value of a leasehold property in Beaworthy is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be addressed well before the eighty year threshold. Statute enables Beaworthy qualifying lessees to an additional term of 90 years over and above the remaining term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Beaworthy with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancer we work with provide it.
Subsequent to protracted negotiations with the landlord of her ground floor flat in Beaworthy, Jasmine initiated the lease extension process just as the lease was approaching the critical eighty-year deadline. The legal work was finalised in October 2008. The landlord’s fees were kept to an absolute minimum.
Last Summer we were approach by Mrs A Cox , who moved into a newly refurbished apartment in Beaworthy in February 1997. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative premises in Beaworthy with an extended lease were in the region of £218,000. The average amount of ground rent was £45 invoiced quarterly. The lease end date was in 2088. Considering the 63 years outstanding we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including legals.
Last year we were contacted by Dr C Smith , who bought a garden flat in Beaworthy in January 2002. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Identical flats in Beaworthy with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 invoiced yearly. The lease finished in 2099. Given that there were 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.