For those whose Badsey flat is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold premises in Badsey with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Badsey can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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.
In recent months Luca, started to get near to the eighty-year mark with the lease on his leasehold flat in Badsey. In buying his home two decades ago, the unexpired term was of minimal concern. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Luca arranged for a lease extension at the eleventh hour in March. Luca and the landlord ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the figure would have escalated by at least £1,125.
Last year we were e-mailed by Ms S Khan , who completed a garden flat in Badsey in August 2005. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Badsey with an extended lease were valued around £200,000. The average ground rent payable was £50 collected per annum. The lease terminated in 2103. Having 78 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.
Mr Samuel Davies owned a studio flat in Badsey in April 2009. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative homes in Badsey with an extended lease were worth £267,600. The average amount of ground rent was £65 collected annually. The lease ran out on 2 June 2092. Considering the 67 years remaining we approximated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 not including fees.