It’s an underpublicised certainty that a Badminton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Badminton property market.Where your lease has approximately 90 years left, you need to 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 slips below 80 years - otherwise a higher amount will be payable. Most flat owners in Badminton will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Badminton with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Santander | |
| Skipton Building Society |
The lawyers that we work with procure Badminton 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 conveyancing solicitor we work with provide it.
In recent months Ollie, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Badminton. In buying his home two decades ago, the lease term was of no importance. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Ollie extended the lease just under the wire in September. Ollie and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had descended to less than eighty years, the price would have escalated by a minimum £1,000.
Last June we were e-mailed by Mrs Emma Scott , who completed a garden flat in Badminton in April 2010. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Badminton with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease came to a finish in 2099. Considering the 73 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Dr A Bailey was assigned a lease of a garden flat in Badminton in March 2002. The question was if we could approximate the premium could be for a ninety year lease extension. Similar premises in Badminton with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated in 2088. Taking into account 62 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of costs.