Bedworth leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bedworth will usually qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Bedworth with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bedworth can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bedworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew was the the leasehold owner of a conversion flat in Bedworth being marketed with a lease of fraction over sixty years left. Matthew informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2013 we were called by Ms H Ramírez who, having bought a basement apartment in Bedworth in May 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Bedworth with an extended lease were in the region of £171,800. The mid-range ground rent payable was £55 invoiced per annum. The lease elapsed on 22 February 2076. Taking into account 50 years remaining we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus professional charges.
In 2013 we were phoned by Dr Jack Clarke who, having moved into a studio apartment in Bedworth in November 1995. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Bedworth with a long lease were in the region of £280,000. The average ground rent payable was £45 invoiced yearly. The lease concluded in 2096. Given that there were 70 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.