There is no doubt about it a leasehold property in Beaminster is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Beaminster will qualify for this right; nevertheless a lawyer can advise whether you qualify 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 more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Beaminster,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Beaminster valuers.
Last October Harrison, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Beaminster. Having purchased his flat 18 years ago, the length of the lease was of minimal interest. by good luck, he realised he would soon be paying way over the odds for Extending the lease. Harrison extended the lease just in the nick of time last March. Harrison and the freeholder via the managing agents eventually settled on sum of £5,000 . If the lease had dropped below 80 years, the sum would have increased by a minimum £1,075.
Dr Y Torres completed a recently refurbished apartment in Beaminster in April 1999. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparative residencies in Beaminster with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ended in 2098. Having 73 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
Dr Abbie Anderson took over the lease of a studio apartment in Beaminster in October 1998. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar properties in Beaminster with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 collected annually. The lease ended in 2078. Given that there were 53 years left we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 not including expenses.