Unfortunately that a Bedworth residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Bedworth property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. The majority of flat owners in Bedworth will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bedworth can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bedworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy discussions with the freeholder of her one bedroom apartment in Bedworth, Yasmin commenced the lease extension process as the 80 year threshold was fast coming. The legal work completed in July 2006. The landlord’s costs were negotiated to below five hundred GBP.
In 2010 we were contacted by Mr and Mrs. P Bell who, having owned a basement apartment in Bedworth in July 2011. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable homes in Bedworth with a long lease were valued around £223,400. The mid-range amount of ground rent was £60 collected monthly. The lease end date was in 2084. Given that there were 59 years remaining we calculated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of costs.
In 2010 we were e-mailed by Ms A Parker who, having purchased a studio flat in Bedworth in June 2010. The question was if we could estimate the price would be to prolong the lease by an additional years. Comparative residencies in Bedworth with an extended lease were in the region of £205,000. The average ground rent payable was £50 billed every twelve months. The lease finished in 2104. Having 79 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.