Beaworthy leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Beaworthy enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Beaworthy you really ought to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent 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 | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 Finn, came critically close to the 80-year threshold with the lease on his garden flat in Beaworthy. Having purchased his property two decades ago, the length of the lease was of no relevance. Luckily, he realised he needed to take steps soon on a lease extension. Finn extended the lease just ahead of time last June. Finn and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If the lease had slipped to less than eighty years, the sum would have become more costly by at least £1,100.
Ms K Jones completed a purpose-built flat in Beaworthy in August 1999. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Beaworthy with a long lease were in the region of £280,000. The average ground rent payable was £55 collected annually. The lease concluded in 2103. Taking into account 78 years remaining we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.
In 2013 we were phoned by Dr W Davies who, having was assigned a lease of a ground floor apartment in Beaworthy in October 1999. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Beaworthy with an extended lease were valued around £191,000. The average amount of ground rent was £65 invoiced monthly. The lease terminated in 2083. Given that there were 58 years outstanding we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus costs.