Unfortunately that a Great Baddow residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Great Baddow property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. Most flat owners in Great Baddow will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Great Baddow with more than 100 years remaining 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Great Baddow leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Noah, came dangerously near to the 80-year threshold with the lease on his garden flat in Great Baddow. In buying his flat two decades ago, the lease term was of minimal interest. Thankfully, he noticed he needed to take action soon on Extending the lease. Noah arranged for a lease extension at the eleventh hour in August. Noah and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If the lease had fallen below 80 years, the amount would have gone up by a minimum £1,150.
In 2014 we were called by Mrs Robyn Rose who, having completed a one bedroom flat in Great Baddow in January 2001. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical properties in Great Baddow with a long lease were worth £290,000. The mid-range ground rent payable was £60 collected quarterly. The lease came to a finish on 4 September 2105. Having 80 years unexpired we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.
Dr W García completed a first floor apartment in Great Baddow in May 2001. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable flats in Great Baddow with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 collected quarterly. The lease end date was in 2085. Having 60 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of fees.