The market value of a leasehold property in Beeston is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. Ideally one should start the lease extension process when a lease still has 82 years to run so that a lease extension can be addressed ahead of the 80 year cut off point. Leasehold Reform legislation entitles Beeston qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Beeston leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her basement apartment in Beeston, Kirsty initiated the lease extension process as the 80 year mark was quickly nearing. The legal work was concluded in April 2006. The freeholder’s charges were kept to an absolute minimum.
Dr Liam Clark bought a studio apartment in Beeston in August 1998. The question was if we could approximate the price could be for a 90 year lease extension. Similar flats in Beeston with a long lease were worth £261,600. The average amount of ground rent was £60 billed annually. The lease ended on 24 May 2077. Given that there were 52 years left we estimated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of expenses.
Mr H Moreau bought a ground floor flat in Beeston in October 2005. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Identical premises in Beeston with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 invoiced yearly. The lease finished in 2088. Taking into account 63 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 not including fees.