On the balance of probabilities if you own a flat in Bewdley you actually own a long leasehold interest over your property
Leasehold residencies in Bewdley with in excess of one hundred years unexpired 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a freeholder in Bewdley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bewdley valuers.
In the wake of eight months of protracted correspondence with the landlord of her leasehold apartment in Bewdley, Natasha started the lease extension process just as the lease was coming close to the critical eighty-year threshold. The transaction was finalised in July 2014. The landlord’s fees were restricted to under 550 GBP.
Mr and Mrs. J Robinson owned a studio apartment in Bewdley in January 2011. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Identical properties in Bewdley with a long lease were valued around £218,000. The average amount of ground rent was £45 collected quarterly. The lease expired on 7 April 2089. Considering the 63 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 plus costs.
In 2013 we were phoned by Dr W Collins who, having bought a ground floor flat in Bewdley in April 2008. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Identical properties in Bewdley with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease termination date was on 11 January 2100. Taking into account 74 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.