It’s a harsh certainty that a Bagillt residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Bagillt property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term falls below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Bagillt will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bagillt can be a difficult process. We recommend you obtain guidance 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 in-depth market knowledge procuring Bagillt lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lewis owned a studio flat in Bagillt on the market with a lease of a little over 61 years left. Lewis on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Lewis to exercise his statutory right. Lewis procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Mrs Grace André completed a basement flat in Bagillt in January 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparable flats in Bagillt with 100 year plus lease were worth £254,200. The average ground rent payable was £60 billed annually. The lease end date was on 21 August 2076. Having 51 years outstanding we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of costs.
In 2012 we were approached by Mr and Mrs. T Rogers who, having acquired a basement flat in Bagillt in August 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Bagillt with a long lease were worth £210,600. The average ground rent payable was £45 invoiced quarterly. The lease came to a finish in 2087. Considering the 62 years remaining we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of costs.