Beaminster leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Beaminster tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Beaminster you must check if your lease has between seventy and ninety years remaining. There are good reasons why a Beaminster flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in Beaminster with more than one hundred years left on the lease are sometimes referred to as ‘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 freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you enhanced control over the value of your Beaminster leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the freeholder of her studio apartment in Beaminster, Amy initiated the lease extension process as the 80 year deadline was swiftly approaching. The lease extension completed in May 2007. The landlord’s charges were kept to an absolute minimum.
Mr Isaac Jones took over the lease of a garden apartment in Beaminster in October 2012. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparable flats in Beaminster with a long lease were worth £218,000. The mid-range amount of ground rent was £45 collected per annum. The lease ended in 2089. Given that there were 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of costs.
Last April we were e-mailed by Ms Mollie Morgan , who owned a studio apartment in Beaminster in July 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Beaminster with an extended lease were worth £265,000. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed in 2100. Having 74 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.