As the the remaining lease term of a Bagillt domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 125 years remaining then this decrease may be negligible that being said 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 known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Bagillt will meet the qualifying criteria; however a conveyancer will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| 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 |
Retaining our service will provide you increased control over the value of your Bagillt leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Callum, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Bagillt. Having purchased his home two decades ago, the unexpired term was of no bearing. Fortunately, he realised he would imminently be paying way over the odds for Extending the lease. Callum extended the lease at the eleventh hour in September. Callum and the freeholder in the end settled on sum of £5,000 . If he failed to meet the deadline, the price would have gone up by at least £975.
Mrs E Jackson was assigned a lease of a purpose-built flat in Bagillt in April 1996. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable residencies in Bagillt with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 collected yearly. The lease concluded in 2088. Taking into account 63 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus expenses.
Ms Sophia Howard acquired a newly refurbished apartment in Bagillt in July 2000. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Comparable flats in Bagillt with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £55 billed per annum. The lease finished on 9 October 2099. Given that there were 74 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.