The closer a residential lease in Beaworthy nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 100 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Beaworthy will qualify for this right; however a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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 conveyancing solicitor we work with provide it.
In recent months Callum, came precariously close to the eighty-year threshold with the lease on his one bedroom flat in Beaworthy. Having bought his home 19 years previously, the length of the lease was of minimal concern. Thankfully, he realised he needed to take action soon on Extending the lease. Callum extended the lease at the eleventh hour last April. Callum and the landlord subsequently agreed on sum of £6,000 . If he not met the deadline, the premium would have become more exhorbitant by a minimum £1,100.
Mr and Mrs. J Vincent was assigned a lease of a basement flat in Beaworthy in January 2001. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in Beaworthy with a long lease were valued around £265,000. The average ground rent payable was £50 collected annually. The lease finished on 2 March 2098. Given that there were 73 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Last Spring we were approach by Mrs V Lefebvre , who took over the lease of a one bedroom flat in Beaworthy in February 2005. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Identical flats in Beaworthy with a long lease were valued about £264,000. The mid-range ground rent payable was £60 invoiced per annum. The lease elapsed in 2078. Taking into account 53 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus professional charges.