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 envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded well before the 80 year mark. Statute entitles Beaworthy qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Beaworthy with more than one hundred 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| TSB | |
| The Mortgage Works |
Retaining our service will provide you increased control over the value of your Beaworthy leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Austin owned a conversion apartment in Beaworthy being sold with a lease of fraction over sixty years remaining. Austin on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Austin to invoke his statutory right. Austin obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2013 we were phoned by Dr Edward Nelson who, having purchased a purpose-built flat in Beaworthy in July 2001. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar homes in Beaworthy with a long lease were in the region of £218,000. The average ground rent payable was £45 invoiced every twelve months. The lease finished on 14 March 2089. Having 63 years outstanding we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of fees.
Dr Natalie Martin completed a garden apartment in Beaworthy in May 1999. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Beaworthy with 100 year plus lease were worth £270,000. The average ground rent payable was £55 billed yearly. The lease terminated in 2100. Having 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.