As the the remaining lease term of a Beaminster domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. Most flat owners in Beaminster will meet the qualifying criteria; that being said a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Beaminster can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Beaminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Leo, started to get near to the eighty-year threshold with the lease on his first floor flat in Beaminster. In buying his flat two decades ago, the unexpired term was of little importance. Luckily, he recognised he needed to take steps soon on a lease extension. Leo arranged for a lease extension just under the wire in June. Leo and the landlord in the end settled on the final figure of £6,000 . If the lease had gone below eighty years, the price would have gone up by a minimum £1,050.
Last Autumn we were phoned by Mr Freddie Ramírez , who took over the lease of a purpose-built flat in Beaminster in May 1997. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar flats in Beaminster with a long lease were in the region of £193,400. The average amount of ground rent was £65 invoiced annually. The lease came to a finish on 18 June 2084. Taking into account 59 years remaining we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
Last May we were phoned by Mr and Mrs. C Taylor , who acquired a first floor flat in Beaminster in September 2008. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable properties in Beaminster with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ended in 2095. Given that there were 70 years remaining we approximated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 plus expenses.