Beddau leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Beddau enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Beddau you would be well advised to check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Beddau leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in Beddau with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Beddau leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her studio apartment in Beddau, Chantelle commenced the lease extension process as the 80 year threshold was rapidly coming. The lease extension completed in August 2008. The landlord’s fees were kept to an absolute minimum.
Last month we were approach by Dr H Alexander , who bought a garden flat in Beddau in April 2012. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar properties in Beddau with a long lease were valued around £171,800. The average amount of ground rent was £55 invoiced quarterly. The lease finished in 2075. Having 50 years remaining we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of expenses.
In 2012 we were called by Mr Jackson Allen who, having took over the lease of a one bedroom apartment in Beddau in October 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Beddau with a long lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced annually. The lease ran out in 2095. Considering the 70 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.