It’s an underpublicised certainty that a Bedmond residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Bedmond property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be payable. Most leasehold owners in Bedmond will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
Engaging our service gives you enhanced control over the value of your Bedmond leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the freeholder of her first floor flat in Bedmond, Hannah started the lease extension process just as the lease was approaching the all-important eighty-year deadline. The transaction was concluded in November 2006. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were approached by Mr and Mrs. B Cox who, having took over the lease of a purpose-built flat in Bedmond in April 2005. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative flats in Bedmond with a long lease were worth £191,400. The average ground rent payable was £55 billed annually. The lease concluded on 25 June 2080. Considering the 54 years unexpired we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of legals.
In 2013 we were phoned by Ms Sarah Jones who, having bought a studio flat in Bedmond in July 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Bedmond with an extended lease were worth £295,000. The average amount of ground rent was £45 invoiced per annum. The lease ended on 27 June 2100. Taking into account 74 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.