The market value of Bedford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is below than 80 years
Leasehold premises in Bedford with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Bedford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bedford valuers.
Half a year ago Cameron, started to get near to the 80-year threshold with the lease on his basement flat in Bedford. Having purchased his flat twenty years previously, the lease term was of little relevance. by good luck, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Cameron arranged for a lease extension at the eleventh hour in April. Cameron and the landlord subsequently agreed on an amount of £5,000 . If the lease had dipped lower than 80 years, the figure would have gone up by at least £850.
Mr and Mrs. F Bonnet bought a garden flat in Bedford in May 2003. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar residencies in Bedford with an extended lease were valued about £168,800. The average ground rent payable was £60 invoiced every twelve months. The lease terminated on 6 January 2080. Having 55 years outstanding we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including legals.
Mr Jackson Peterson purchased a basement flat in Bedford in July 2012. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative residencies in Bedford with 100 year plus lease were valued about £235,200. The average amount of ground rent was £45 billed monthly. The lease terminated in 2091. Having 66 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.