It’s a harsh certainty that a Bedmond residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Bedmond property market.Where your lease has approximately 90 years left, you should start considering 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 dips lower than eighty years - otherwise a higher premium will be payable. Most leasehold owners in Bedmond will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Bedmond,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 in-depth market knowledge and the close ties they enjoy with Bedmond valuers.
In the wake of 9 months of unsuccessful correspondence with the landlord of her leasehold apartment in Bedmond, Amy commenced the lease extension process as the 80 year deadline was fast advancing. The transaction was finalised in May 2007. The freeholder’s costs were negotiated to below 700 pounds.
Last Autumn we were e-mailed by Mr and Mrs. Y Clark , who owned a one bedroom flat in Bedmond in October 2003. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Bedmond with an extended lease were in the region of £181,600. The average amount of ground rent was £55 billed monthly. The lease expired on 8 October 2077. Considering the 52 years remaining we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.
Mr and Mrs. H Martinez completed a one bedroom flat in Bedmond in June 2004. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparative homes in Bedmond with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease expired on 23 August 2097. Taking into account 72 years outstanding we estimated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of costs.