The re-sale value of a leasehold property in Beaminster is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that a lease extension can be finalised in advance of the eighty year cut off point. Leasehold Reform legislation entitles Beaminster qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Beaminster,the lease extension experts that we work with will always be prepared 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.
Half a year ago Logan, started to get close to the eighty-year mark with the lease on his studio apartment in Beaminster. Having purchased his flat two decades ago, the length of the lease was of minimal bearing. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Logan extended the lease just ahead of time last August. Logan and the freeholder in the end agreed on an amount of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £1,075.
In 2014 we were approached by Dr P Mercier who, having purchased a ground floor apartment in Beaminster in October 1997. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Beaminster with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out in 2102. Considering the 76 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
Mr Eli Kelly acquired a purpose-built flat in Beaminster in August 1997. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Beaminster with a long lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed on 28 September 2082. Given that there were 56 years as a residual term we approximated the premium to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of legals.