The re-sale value of a leasehold property in Bagillt is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded well before the 80 year threshold. Leasehold Reform legislation enables Bagillt qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Bagillt leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the landlord of her garden flat in Bagillt, Danielle initiated the lease extension process as the eighty year deadline was quickly advancing. The lease extension was concluded in October 2007. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were called by Mr V Smith , who completed a purpose-built flat in Bagillt in September 2002. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Similar homes in Bagillt with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 billed quarterly. The lease lapsed on 25 October 2086. Taking into account 60 years unexpired we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 not including professional charges.
Last Summer we were approach by Mr and Mrs. O Clarke , who acquired a first floor apartment in Bagillt in January 1998. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable properties in Bagillt with a long lease were worth £255,000. The average ground rent payable was £50 invoiced quarterly. The lease concluded on 20 July 2097. Taking into account 71 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.