The market value of a leasehold property in Beddgelert depends on how many years the lease has remaining. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be addressed prior to the 80 year mark. Leasehold Reform legislation enables Beddgelert qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with procure Beddgelert lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Charlie, started to get close to the eighty-year mark with the lease on his ground floor apartment in Beddgelert. Having bought his home two decades ago, the unexpired term was of no importance. Thankfully, he noticed he needed to take steps soon on a lease extension. Charlie extended the lease at the eleventh hour in July. Charlie and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If the lease had fallen lower than eighty years, the sum would have escalated by at least £1,025.
Last Summer we were contacted by Mr and Mrs. S Wright , who bought a newly refurbished flat in Beddgelert in February 2001. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative residencies in Beddgelert with 100 year plus lease were worth £223,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease lapsed in 2085. Having 59 years left we estimated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 plus fees.
Last Christmas we were contacted by Ms Jordan Stewart , who owned a recently refurbished flat in Beddgelert in April 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Beddgelert with an extended lease were worth £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease ran out on 6 March 2105. Considering the 79 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.