It’s an underpublicised truth that a Bedale residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Bedale property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term slips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Bedale will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| National Westminster Bank | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Bedale,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 Bedale valuers.
Jack owned a 2 bedroom apartment in Bedale being marketed with a lease of a few days over 72 years left. Jack on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jack to invoke his statutory right. Jack obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
In 2014 we were approached by Mr and Mrs. R Dupont who, having owned a purpose-built apartment in Bedale in February 1999. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative premises in Bedale with a long lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced quarterly. The lease end date was on 1 March 2078. Having 52 years left we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus legals.
Last February we were e-mailed by Mr and Mrs. I White , who was assigned a lease of a ground floor apartment in Bedale in March 1998. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar residencies in Bedale with a long lease were worth £285,000. The average amount of ground rent was £45 collected annually. The lease elapsed on 22 January 2098. Taking into account 72 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.