Bedale residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Bedale leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the landlord of her garden flat in Bedale, Isabelle started the lease extension process just as her lease was approaching the crucial eighty-year threshold. The lease extension was concluded in May 2009. The landlord’s fees were kept to an absolute minimum.
Last Winter we were contacted by Mrs Rachel Martinez , who was assigned a lease of a recently refurbished apartment in Bedale in August 2007. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical flats in Bedale with an extended lease were in the region of £260,200. The average ground rent payable was £65 invoiced monthly. The lease terminated in 2091. Taking into account 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of costs.
Last Winter we were e-mailed by Mr and Mrs. G Brooks , who owned a one bedroom apartment in Bedale in July 2007. 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 properties in Bedale with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced annually. The lease ran out in 2080. Having 55 years left we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including professional charges.