Bedford 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 the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Bedford residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bedford you really ought to check if your lease has between 70 and 90 years left. There are compelling reasons why a Bedford flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Bedford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bedford valuers.
Hunter was the the leasehold owner of a high value apartment in Bedford being marketed with a lease of a little over 59 years unexpired. Hunter informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Hunter to invoke his statutory right. Hunter procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2013 we were phoned by Dr N Stewart who, having owned a basement apartment in Bedford in February 2001. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Bedford with an extended lease were worth £225,400. The mid-range ground rent payable was £45 billed quarterly. The lease ended on 11 September 2089. Given that there were 64 years left we estimated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 plus expenses.
Mr Hunter Bonnet owned a one bedroom apartment in Bedford in June 2012. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Bedford with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease concluded on 7 July 2100. Taking into account 75 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.