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 gets more expensive. It is the case that most Benson tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Benson you really ought to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Benson flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is effected without delay
Leasehold residencies in Benson with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Benson leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the landlord of her two bedroom flat in Benson, Jessica initiated the lease extension process as the eighty year threshold was quickly coming. The legal work completed in August 2011. The freeholder’s costs were negotiated to slightly above 650 pounds.
Dr T Davies owned a first floor flat in Benson in August 2000. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar premises in Benson with a long lease were valued about £275,000. The average amount of ground rent was £55 collected yearly. The lease terminated on 7 September 2102. Having 76 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
In 2011 we were e-mailed by Mr and Mrs. E Wright who, having acquired a newly refurbished apartment in Benson in October 2011. The question was if we could estimate the price could be for a ninety year lease extension. Similar properties in Benson with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out in 2082. Taking into account 56 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of legals.