For those whose Baguley flat is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Baguley,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Baguley valuers.
After protracted negotiations with the freeholder of her basement flat in Baguley, Kirsty commenced the lease extension process as the 80 year mark was swiftly approaching. The transaction was finalised in September 2014. The landlord’s costs were negotiated to a tad over 550 pounds.
Dr Lewis Norbert owned a studio flat in Baguley in March 2002. We are asked if we could estimate the premium would be to extend the lease by an additional years. Identical homes in Baguley with an extended lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed yearly. The lease concluded on 26 January 2079. Having 54 years unexpired we calculated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of legals.
Last Summer we were e-mailed by Mr and Mrs. K Simon , who moved into a recently refurbished flat in Baguley in July 1997. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Identical residencies in Baguley with a long lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2099. Given that there were 74 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.