The nearer a domestic lease in Badsey gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Badsey will qualify for this right; nevertheless a conveyancer can confirm whether you qualify 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.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 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 |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| 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. |
Lease extensions in Badsey can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
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 Badsey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jamie owned a conversion flat in Badsey being marketed with a lease of a little over 61 years left. Jamie informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Spring we were approach by Dr S López , who owned a purpose-built apartment in Badsey in March 2009. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparable properties in Badsey with 100 year plus lease were valued around £218,400. The average amount of ground rent was £60 billed monthly. The lease came to a finish on 11 September 2085. Considering the 59 years left we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 not including fees.
In 2012 we were e-mailed by Dr M Watson who, having bought a purpose-built apartment in Badsey in July 2007. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in Badsey with a long lease were in the region of £205,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed in 2105. Taking into account 79 years remaining we approximated the compensation to the landlord for the lease extension to be between £7,600 and £8,800 plus professional charges.