Badsey leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Badsey residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Badsey you would be well advised to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Badsey can be a difficult process. We recommend you obtain professional help from a lawyer 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 a wealth of experience procuring Badsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Reuben was the the leasehold owner of a 2 bedroom flat in Badsey on the market with a lease of a few days over 61 years remaining. Reuben informally approached his freeholder 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 subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert legal guidance and secured satisfactory deal informally and sell the property.
Last Autumn we were contacted by Dr Harvey González , who completed a ground floor apartment in Badsey in September 2012. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative flats in Badsey with a long lease were valued about £191,400. The average amount of ground rent was £55 invoiced monthly. The lease lapsed on 17 July 2079. Given that there were 54 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 not including legals.
Last May we were called by Dr E Williams , who owned a purpose-built flat in Badsey in March 1995. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar premises in Badsey with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 collected monthly. The lease ran out in 2099. Given that there were 74 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.