The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Baguley have the legal entitlement to extend the lease for a further ninety years under legislation. Do think carefully before delaying your Baguley lease extension. Putting off the costs today simply increases the price you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Baguley can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Baguley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan was the the leasehold owner of a 2 bedroom apartment in Baguley being sold with a lease of a few days over 59 years outstanding. Ethan informally contacted his landlord being 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 on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Ms T Morgan completed a ground floor flat in Baguley in January 2002. The question was if we could approximate the price could be to extend the lease by 90 years. Comparative residencies in Baguley with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed annually. The lease finished on 8 March 2077. Taking into account 51 years left we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.
Mrs Poppy Davies purchased a recently refurbished apartment in Baguley in July 1998. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable premises in Baguley with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected yearly. The lease expired in 2097. Taking into account 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.