On the balance of probabilities where you own a flat in Baguley you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Retaining our service gives you better control over the value of your Baguley leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
George owned a 2 bedroom apartment in Baguley on the market with a lease of fraction over 59 years outstanding. George on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were George to invoke his statutory right. George obtained expert advice and secured satisfactory deal informally and readily saleable.
In 2013 we were e-mailed by Dr U Lee who, having moved into a purpose-built apartment in Baguley in April 2001. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative flats in Baguley with an extended lease were valued about £235,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease concluded in 2087. Given that there were 62 years unexpired we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus legals.
Dr T Taylor acquired a garden flat in Baguley in September 2007. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical premises in Baguley with an extended lease were in the region of £174,200. The average ground rent payable was £55 invoiced quarterly. The lease finished on 14 April 2076. Considering the 51 years left we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus expenses.