Unfortunately that a Badsey residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Badsey property market.Once your lease gets to 85ish years, you should start thinking about 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 falls lower than 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Badsey will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Badsey with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date 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 landlord in Badsey,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Badsey valuers.
Ibrahim was the the leasehold proprietor of a high value flat in Badsey on the market with a lease of a few days over sixty years unexpired. Ibrahim informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
Mr and Mrs. R Roux moved into a one bedroom flat in Badsey in October 2011. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical premises in Badsey with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease terminated on 11 August 2078. Considering the 52 years left we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including legals.
Dr Natasha Martin took over the lease of a one bedroom flat in Badsey in January 2003. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable residencies in Badsey with an extended lease were valued about £285,000. The average ground rent payable was £45 invoiced annually. The lease ended on 8 May 2098. Given that there were 72 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.