Bagillt 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. The majority of owners of residential leasehold property in Bagillt enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Bagillt you must see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Bagillt flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in Bagillt with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
| 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 Bagillt can be a difficult process. We recommend you procure 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 a wealth of experience 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.
Off the back of lengthy discussions with the freeholder of her purpose-built flat in Bagillt, Chantelle initiated the lease extension process as the eighty year mark was swiftly advancing. The lease extension was concluded in August 2007. The freeholder’s charges were kept to an absolute minimum.
Mr Logan Lefèvre completed a one bedroom flat in Bagillt in June 1995. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar properties in Bagillt with an extended lease were worth £193,400. The average amount of ground rent was £65 collected yearly. The lease elapsed in 2084. Having 59 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of legals.
Last year we were contacted by Dr Hannah Lee , who owned a studio flat in Bagillt in November 2012. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar premises in Bagillt with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 collected quarterly. The lease termination date was on 22 November 2095. Having 70 years unexpired we estimated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 not including legals.