Bedford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Bedford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bedford you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Bedford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bedford valuers.
Oliver owned a 2 bedroom apartment in Bedford on the market with a lease of fraction over 61 years left. Oliver informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Autumn we were contacted by Dr Madeleine Walker , who bought a ground floor apartment in Bedford in August 2006. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Bedford with 100 year plus lease were worth £191,000. The average ground rent payable was £65 billed monthly. The lease lapsed in 2083. Having 58 years unexpired we calculated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 plus expenses.
Last Winter we were e-mailed by Dr T Michel , who bought a garden flat in Bedford in October 2011. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative properties in Bedford with a long lease were worth £250,000. The average ground rent payable was £50 collected quarterly. The lease ran out in 2094. Taking into account 69 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.