As the the remaining lease term of a Beaworthy residential lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 100 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years remaining 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 extend the lease sooner than later. The majority of flat owners in Beaworthy will meet the qualifying criteria; 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 not been the owner of the property for two years.
Leasehold premises in Beaworthy with more than one hundred years remaining 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Beaworthy,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 Beaworthy valuers.
Two years ago Harvey, came seriously near to the eighty-year mark with the lease on his purpose- built apartment in Beaworthy. Having bought his property two decades ago, the length of the lease was of no significance. Thankfully, he realised he needed to take action soon on a lease extension. Harvey was able to extend his lease just in the nick of time in April. Harvey and the landlord subsequently settled on an amount of £5,500 . If the lease had descended below 80 years, the figure would have gone up by at least £1,000.
Dr K Murphy took over the lease of a one bedroom flat in Beaworthy in August 2010. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable residencies in Beaworthy with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £60 billed annually. The lease finished in 2106. Having 80 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.
Last Spring we were approach by Ms M David , who acquired a one bedroom flat in Beaworthy in August 2009. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Beaworthy with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish in 2086. Given that there were 60 years remaining we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 not including costs.