Great Baddow leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Great Baddow enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Great Baddow you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Great Baddow with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Great Baddow leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Stanley, started to get close to the eighty-year mark with the lease on his two bedroom flat in Great Baddow. Having purchased his home 19 years ago, the lease term was of little relevance. Fortunately, he noticed he would soon be paying an escalated premium for a lease extension. Stanley was able to extend his lease just ahead of time in June. Stanley and the freeholder via the management company eventually agreed on the final figure of £5,500 . If the lease had dipped to less than eighty years, the figure would have escalated by a minimum £950.
In 2014 we were contacted by Dr F Garcia who, having acquired a basement apartment in Great Baddow in April 1998. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical premises in Great Baddow with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 billed annually. The lease concluded in 2086. Taking into account 60 years left we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus professional charges.
Mr K King completed a ground floor apartment in Great Baddow in March 2010. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar flats in Great Baddow with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected per annum. The lease finished in 2097. Considering the 71 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.