The market value of a leasehold property in Beverley is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the eighty year mark. Leasehold Reform legislation entitles Beverley qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention 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.
Leasehold residencies in Beverley with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Beverley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Adam was the the leasehold proprietor of a high value flat in Beverley on the market with a lease of just over 59 years left. Adam on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Adam to exercise his statutory right. Adam obtained expert advice and secured an acceptable deal without going to tribunal and sell the property.
Ms R Girard took over the lease of a basement flat in Beverley in June 2003. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Beverley with a long lease were worth £191,000. The average ground rent payable was £65 collected every twelve months. The lease lapsed on 3 February 2083. Having 58 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 plus costs.
Last Summer we were called by Mr and Mrs. U Garcia , who acquired a one bedroom flat in Beverley in September 2008. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Similar residencies in Beverley with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expired in 2094. Given that there were 69 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.