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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Irrespective of whether you are a tenant or a landlord in Bagillt,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bagillt valuers.
Off the back of unsuccessful discussions with the freeholder of her leasehold flat in Bagillt, Sophia initiated the lease extension process as the 80 year threshold was fast coming. The lease extension was concluded in November 2008. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were phoned by Dr Aiden Leroy , who took over the lease of a studio apartment in Bagillt in July 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Bagillt with a long lease were worth £218,000. The average amount of ground rent was £45 collected monthly. The lease concluded on 25 April 2088. Considering the 63 years outstanding we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 not including professional charges.
In 2010 we were called by Mr and Mrs. B Flores who, having owned a purpose-built flat in Bagillt in July 2000. The question was if we could estimate the price could be for a 90 year lease extension. Comparable flats in Bagillt with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out in 2099. Given that there were 74 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.