The re-sale value of a leasehold property in Beaminster depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed ahead of the 80 year cut off point. Current legislation entitles Beaminster qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Beaminster with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a landlord in Beaminster,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Beaminster valuers.
In recent months Tommy, came seriously close to the eighty-year threshold with the lease on his ground floor flat in Beaminster. Having bought his property two decades ago, the length of the lease was of minimal interest. by good luck, he noticed he would soon be paying an escalated premium for a lease extension. Tommy extended the lease just under the wire last May. Tommy and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If he not met the deadline, the premium would have gone up by a minimum £1,050.
Last Autumn we were phoned by Mr P Rogers , who acquired a recently refurbished flat in Beaminster in September 2011. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable premises in Beaminster with a long lease were valued about £176,200. The mid-range ground rent payable was £65 billed quarterly. The lease lapsed on 18 November 2082. Having 56 years left we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of legals.
Dr Seth Phillips owned a garden apartment in Beaminster in September 2007. The question was if we could estimate the premium would be to extend the lease by ninety years. Similar residencies in Beaminster with an extended lease were valued around £242,600. The mid-range amount of ground rent was £45 billed quarterly. The lease ended in 2093. Considering the 67 years unexpired we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including expenses.