The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Baguley may extend the lease for an additional ninety years under statute. Do think carefully before delaying your Baguley lease extension. Shelving the costs today simply increases the premium you will eventually have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Lease extensions in Baguley can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 a wealth of experience 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.
John owned a 2 bedroom apartment in Baguley being marketed with a lease of fraction over 72 years remaining. John informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were John to exercise his statutory right. John obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Last Christmas we were approach by Dr C García , who owned a one bedroom flat in Baguley in February 1995. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Baguley with 100 year plus lease were in the region of £208,600. The average amount of ground rent was £60 invoiced quarterly. The lease expired in 2083. Considering the 57 years unexpired we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.
Last January we were called by Mr M Brooks , who owned a recently refurbished apartment in Baguley in August 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical residencies in Baguley with an extended lease were valued about £200,000. The mid-range ground rent payable was £50 collected yearly. The lease expired on 5 April 2103. Having 77 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.