When it comes to long leasehold premises in Bagshot, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Leasehold owners in Bagshot with a lease nearing 81 years left should seriously consider extending it sooner than later. Once a lease has less than 80 years outstanding, under the relevant Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, 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 are not acceptable. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake 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 conveyancer we work with provide it.
Two years ago David, came dangerously close to the 80-year threshold with the lease on his purpose- built flat in Bagshot. Having purchased his property two decades ago, the lease term was of no relevance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. David extended the lease just ahead of time last April. David and the freeholder subsequently settled on sum of £5,500 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £1,100.
Mr and Mrs. M Davis was assigned a lease of a one bedroom apartment in Bagshot in November 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Similar flats in Bagshot with a long lease were valued about £218,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ran out on 4 August 2089. Taking into account 63 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including legals.
Last month we were phoned by Mrs V Moreau , who purchased a one bedroom apartment in Bagshot in July 2004. We are asked if we could estimate the price would be to extend the lease by an additional years. Identical premises in Bagshot with a long lease were valued about £270,000. The average amount of ground rent was £55 billed annually. The lease terminated in 2100. Given that there were 74 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.