Benson leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Benson enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Benson you really ought to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Benson with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Benson,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Benson valuers.
Muhammad was the the leasehold proprietor of a studio apartment in Benson on the market with a lease of just over sixty years left. Muhammad on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last Christmas we were phoned by Ms Francesca Ali , who bought a studio flat in Benson in July 2002. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative flats in Benson with 100 year plus lease were valued about £225,400. The average amount of ground rent was £45 billed monthly. The lease elapsed on 26 May 2090. Taking into account 64 years outstanding we calculated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus fees.
Mrs F White completed a one bedroom apartment in Benson in February 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Benson with an extended lease were worth £270,000. The mid-range ground rent payable was £55 billed every twelve months. The lease elapsed in 2101. Taking into account 75 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.