As the length of the unexpired term of a Beaworthy residential lease diminished so does its value and therefore the value of your property. If the residual term has, beyond 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Beaworthy will qualify for this right; however a lawyer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Beaworthy with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Beaworthy,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Beaworthy valuers.
Luca was the the leasehold owner of a studio apartment in Beaworthy being sold with a lease of just over sixty years remaining. Luca on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Luca to exercise his statutory right. Luca obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
Ms Melissa Young took over the lease of a basement apartment in Beaworthy in October 2002. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar homes in Beaworthy with an extended lease were valued about £176,200. The mid-range amount of ground rent was £65 collected quarterly. The lease came to a finish on 28 August 2082. Having 56 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of legals.
In 2010 we were contacted by Mr and Mrs. H Vincent who, having purchased a one bedroom flat in Beaworthy in June 1995. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Identical properties in Beaworthy with a long lease were in the region of £242,600. The average amount of ground rent was £45 billed yearly. The lease terminated in 2093. Considering the 67 years unexpired we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of fees.