Chances are that where you own a flat in Bedford you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bedford valuers.
Two years ago Muhammad, started to get near to the 80-year threshold with the lease on his one bedroom flat in Bedford. In buying his property two decades ago, the unexpired term was of little importance. Fortunately, he recognised he would soon be paying way over the odds for Extending the lease. Muhammad was able to extend his lease at the eleventh hour in September. Muhammad and the freeholder subsequently settled on a premium of £5,000 . If the lease had dipped lower than 80 years, the premium would have become more exhorbitant by a minimum £925.
Mr and Mrs. R Mason owned a studio flat in Bedford in October 2006. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Similar premises in Bedford with an extended lease were worth £255,000. The average ground rent payable was £50 billed yearly. The lease terminated on 9 January 2096. Taking into account 71 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.
In 2012 we were phoned by Mr W Roux who, having owned a one bedroom apartment in Bedford in August 1998. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparative flats in Bedford with 100 year plus lease were valued about £254,200. The mid-range amount of ground rent was £60 billed yearly. The lease ran out in 2076. Given that there were 51 years left we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 plus professional charges.