The value of Bewdley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is below than eighty years
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Bewdley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bewdley valuers.
Leon owned a studio flat in Bewdley on the market with a lease of a few days over 61 years remaining. Leon informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2014 we were contacted by Mr A Kelly who, having was assigned a lease of a first floor apartment in Bewdley in July 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Similar residencies in Bewdley with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended in 2076. Considering the 51 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including costs.
Mr and Mrs. P Kelly purchased a recently refurbished apartment in Bewdley in September 1995. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Similar residencies in Bewdley with a long lease were in the region of £210,600. The mid-range ground rent payable was £45 billed yearly. The lease finished on 17 April 2087. Given that there were 62 years outstanding we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus legals.