The closer a residential lease in Baguley nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner as opposed to later. Many flat owners in Baguley will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Baguley with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Halifax | |
| Leeds Building Society | |
| Santander |
The conveyancing solicitors that we work with procure Baguley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Leon owned a studio apartment in Baguley being marketed with a lease of a little over fifty eight years left. Leon on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2012 we were approached by Ms S Norbert who, having purchased a studio apartment in Baguley in January 2004. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical premises in Baguley with an extended lease were valued about £275,000. The average ground rent payable was £65 billed monthly. The lease lapsed in 2094. Considering the 68 years unexpired we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.
In 2011 we were phoned by Mr and Mrs. S Petit who, having completed a ground floor flat in Baguley in February 2008. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical properties in Baguley with 100 year plus lease were worth £208,600. The mid-range ground rent payable was £60 billed monthly. The lease terminated in 2083. Given that there were 57 years remaining we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus professional charges.