As the the remaining lease term of a Badminton domestic lease lessens so does its value and therefore the value of your property. If the residual term has, more than 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. Most flat owners in Badminton will meet the qualifying criteria; that being said a lawyer will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Badminton with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Badminton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Badminton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Adam was the the leasehold owner of a studio apartment in Badminton on the market with a lease of just over fifty eight years outstanding. Adam on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Adam to exercise his statutory right. Adam obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Dr Jason Morgan owned a newly refurbished flat in Badminton in February 2002. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable homes in Badminton with an extended lease were in the region of £174,200. The average ground rent payable was £55 collected monthly. The lease came to a finish on 8 August 2076. Having 51 years outstanding we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.
Dr Teddy Rodríguez purchased a newly refurbished apartment in Badminton in April 1998. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar premises in Badminton with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 collected monthly. The lease concluded in 2096. Taking into account 71 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.