Baguley Lease Extension - Free Consultation

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Top reasons for Baguley lease extension


Top reasons for lease extension now:

Increase your lease and increase your Baguley property value

Baguley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Baguley tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Baguley you would be well advised to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

Baguley property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.

Banks and Building Societies may decide not to loan monies with a short lease

Lending institutions are less likely to grant a loan offer on a residential property in Baguley with a short lease. Many lenders simply refuse to lend on leases with under 75 years remaining.

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.
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.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Why use us for your lease extension in Baguley?

Lease extensions in Baguley can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 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.

Baguley Lease Extension Case Studies:

Nathaniel, Baguley, Greater Manchester,

Nathaniel owned a 2 bedroom flat in Baguley on the market with a lease of just over 59 years outstanding. Nathaniel informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.

Baguley case:

In 2014 we were called by Dr David Baker who, having purchased a garden apartment in Baguley in August 2004. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparable premises in Baguley with an extended lease were worth £184,000. The average ground rent payable was £55 collected per annum. The lease finished on 15 May 2078. Given that there were 53 years outstanding we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.

Baguley case:

In 2012 we were called by Mr B Johnson who, having owned a purpose-built flat in Baguley in May 2008. The question was if we could estimate the price would be for a 90 year lease extension. Identical flats in Baguley with an extended lease were in the region of £290,000. The average ground rent payable was £45 invoiced every twelve months. The lease concluded on 25 May 2098. Having 73 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.