Badminton leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the current lease drops lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Badminton will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and procedures to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Badminton with more than 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 service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with undertake Badminton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of protracted discussions with the freeholder of her first floor flat in Badminton, Jasmine started the lease extension process as the 80 year mark was swiftly approaching. The legal work was finalised in November 2015. The landlord’s charges were restricted to slightly above four hundred pounds.
In 2011 we were e-mailed by Ms Rachael Gómez who, having took over the lease of a first floor flat in Badminton in November 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Badminton with 100 year plus lease were in the region of £260,200. The mid-range ground rent payable was £65 invoiced per annum. The lease concluded on 2 February 2091. Given that there were 66 years left we approximated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of expenses.
Mrs Yasmin Patel took over the lease of a one bedroom apartment in Badminton in February 1995. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Similar homes in Badminton with a long lease were worth £198,800. The average amount of ground rent was £55 collected every twelve months. The lease ended in 2080. Considering the 55 years outstanding we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of fees.