Badsey leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Badsey will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Badsey leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Milo was the the leasehold proprietor of a studio apartment in Badsey on the market with a lease of a little over 59 years remaining. Milo on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Milo to exercise his statutory right. Milo procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were contacted by Mr and Mrs. C Brown who, having moved into a one bedroom apartment in Badsey in July 2004. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative residencies in Badsey with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease finished in 2097. Considering the 71 years unexpired we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
In 2013 we were phoned by Dr Alfie Carter who, having was assigned a lease of a ground floor apartment in Badsey in April 2005. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparable homes in Badsey with a long lease were worth £225,800. The mid-range ground rent payable was £60 invoiced per annum. The lease expired on 28 July 2086. Having 60 years unexpired we calculated the compensation to the landlord to extend the lease to be between £25,700 and £29,600 exclusive of legals.