The market value of a leasehold property in Badminton depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded well before the eighty year threshold. Current legislation entitles Badminton qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Badminton with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Badminton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Badminton valuers.
Omar was the the leasehold owner of a conversion apartment in Badminton on the market with a lease of just over fifty eight years left. Omar informally approached his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Omar to invoke his statutory right. Omar procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Spring we were phoned by Mrs K Walker , who moved into a one bedroom apartment in Badminton in April 2001. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparable residencies in Badminton with an extended lease were valued about £171,800. The mid-range ground rent payable was £55 collected per annum. The lease terminated in 2075. Taking into account 50 years outstanding we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of fees.
In 2009 we were called by Dr U Sánchez who, having purchased a purpose-built flat in Badminton in April 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Badminton with a long lease were valued around £280,000. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish on 9 June 2095. Considering the 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.