When it comes to long leasehold property in Bedmond, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years left. Anyone in Bedmond with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has less than eighty years outstanding, under the current legislation the freeholder can calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| TSB | |
| Virgin |
The conveyancing solicitors that we work with handle Bedmond lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Daniel was the the leasehold proprietor of a 2 bedroom apartment in Bedmond being sold with a lease of a few days over 61 years left. Daniel informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Daniel to invoke his statutory right. Daniel procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
In 2009 we were e-mailed by Mr and Mrs. T Ward who, having owned a one bedroom apartment in Bedmond in August 2001. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative properties in Bedmond with a long lease were worth £280,000. The average ground rent payable was £45 invoiced per annum. The lease came to a finish on 22 May 2095. Having 69 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.
Last Christmas we were called by Mr and Mrs. C Jones , who completed a one bedroom flat in Bedmond in March 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Bedmond with a long lease were worth £216,000. The average ground rent payable was £60 invoiced quarterly. The lease ran out in 2084. Considering the 58 years left we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.