With a residential leasehold property in Baguley, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years remaining. Residents in Baguley with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years left, under the current legislation the landlord can calculate and demand a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Baguley can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring Baguley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her studio flat in Baguley, Olivia initiated the lease extension process just as her lease was coming close to the critical eighty-year mark. The transaction was finalised in November 2013. The freeholder’s fees were negotiated to below 650 pounds.
In 2014 we were contacted by Mr and Mrs. N Smith who, having moved into a ground floor flat in Baguley in September 1999. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparative homes in Baguley with 100 year plus lease were valued around £198,800. The average amount of ground rent was £55 collected quarterly. The lease came to a finish in 2081. Taking into account 55 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus expenses.
Dr Rhiannon Moreau moved into a one bedroom flat in Baguley in August 2003. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Baguley with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 billed annually. The lease lapsed in 2101. Taking into account 75 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.