The closer a domestic lease in Great Baddow nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over one hundred years remaining then this decrease may be fractional however 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 sharply the cost. It is the main logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Great Baddow will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Great Baddow,the lease extension experts that we work with will always be happy 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 2014 Dylan, came dangerously near to the 80-year mark with the lease on his purpose- built apartment in Great Baddow. In buying his flat twenty years ago, the unexpired term was of minimal significance. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Dylan extended the lease at the eleventh hour last September. Dylan and the landlord in the end agreed on a premium of £6,000 . If the lease had slipped to less than 80 years, the amount would have increased by at least £925.
Mr and Mrs. B Peterson purchased a recently refurbished flat in Great Baddow in July 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparable homes in Great Baddow with 100 year plus lease were valued around £242,600. The average ground rent payable was £45 invoiced every twelve months. The lease lapsed in 2093. Having 67 years outstanding we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 not including expenses.
In 2010 we were contacted by Dr Toby Brooks who, having moved into a newly refurbished flat in Great Baddow in September 1997. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar residencies in Great Baddow with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected quarterly. The lease expired on 9 May 2104. Given that there were 78 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.