It’s an underpublicised certainty that a Bessacarr residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Bessacarr property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term drops below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Bessacarr will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| The Mortgage Works |
Using our service will provide you enhanced control over the value of your Bessacarr leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oscar was the the leasehold proprietor of a high value flat in Bessacarr on the market with a lease of a little over 61 years left. Oscar informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oscar to exercise his statutory right. Oscar procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2012 we were contacted by Ms Kirsty Nelson who, having was assigned a lease of a one bedroom apartment in Bessacarr in October 2003. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Similar flats in Bessacarr with an extended lease were in the region of £174,200. The average amount of ground rent was £55 collected annually. The lease expiry date was on 4 January 2077. Considering the 51 years remaining we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including fees.
In 2012 we were approached by Mr and Mrs. B Jones who, having owned a studio flat in Bessacarr in February 1997. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar premises in Bessacarr with an extended lease were valued around £280,000. The average amount of ground rent was £45 collected monthly. The lease concluded on 9 July 2097. Given that there were 71 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.