The re-sale value of a leasehold property in Badminton is impacted by how long the lease has remaining. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be addressed in advance of the eighty year mark. Leasehold Reform legislation entitles Badminton qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Badminton with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 freeholder in Badminton,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 experience and the close ties they enjoy with Badminton valuers.
In recent months Ryan, started to get near to the 80-year mark with the lease on his studio apartment in Badminton. In buying his home two decades ago, the lease term was of minimal bearing. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Ryan arranged for a lease extension at the eleventh hour last August. Ryan and the freeholder via the managing agents eventually settled on sum of £5,500 . If he had missed the deadline, the premium would have escalated by a minimum £1,050.
In 2010 we were called by Mrs N Bernard who, having was assigned a lease of a one bedroom apartment in Badminton in August 2009. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Similar homes in Badminton with a long lease were in the region of £233,200. The average amount of ground rent was £60 billed per annum. The lease expiry date was in 2087. Taking into account 61 years left we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 not including professional charges.
Mr Jacob Ward moved into a ground floor flat in Badminton in August 2004. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparative properties in Badminton with an extended lease were in the region of £171,800. The average amount of ground rent was £55 collected per annum. The lease came to a finish on 25 February 2076. Considering the 50 years remaining we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus expenses.