Great Baddow leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease falls under 80 years - otherwise a higher premium will be payable. Leasehold owners in Great Baddow will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain situations you may not qualify. There are also strict deadlines and procedures to follow once the process has started so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Great Baddow,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Great Baddow valuers.
In the wake of eight months of unsuccessful discussions with the landlord of her two bedroom flat in Great Baddow, Nicole initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The legal work was concluded in May 2012. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Mr Ethan Allen who, having completed a ground floor apartment in Great Baddow in June 2008. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable residencies in Great Baddow with an extended lease were worth £191,000. The average amount of ground rent was £65 billed monthly. The lease ended in 2084. Taking into account 58 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including professional charges.
Ms H Roberts took over the lease of a newly refurbished apartment in Great Baddow in March 1997. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparable homes in Great Baddow with a long lease were in the region of £250,000. The average ground rent payable was £50 billed quarterly. The lease finished in 2095. Considering the 69 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.