Bagshot leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Bagshot residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bagshot you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The conveyancing solicitors that we work with handle Bagshot lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to protracted discussions with the freeholder of her two bedroom flat in Bagshot, Jessica commenced the lease extension process as the eighty year deadline was fast nearing. The legal work completed in March 2007. The freeholder’s fees were negotiated to slightly above six hundred GBP.
Last year we were called by Dr F Clark , who owned a one bedroom flat in Bagshot in March 2005. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar flats in Bagshot with an extended lease were worth £250,000. The average ground rent payable was £50 billed monthly. The lease came to a finish on 14 June 2093. Taking into account 68 years outstanding we approximated the premium to the landlord to extend the lease to be between £10,500 and £12,000 not including legals.
In 2010 we were contacted by Dr Millie López who, having owned a newly refurbished flat in Bagshot in November 1998. The question was if we could estimate the premium could be to extend the lease by 90 years. Similar residencies in Bagshot with an extended lease were valued around £285,000. The average amount of ground rent was £55 collected yearly. The lease ended on 20 February 2104. Considering the 79 years left we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.