The value of Bagshot leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is less than eighty years
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Bagshot can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 in-depth market knowledge procuring Bagshot lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy discussions with the freeholder of her ground floor apartment in Bagshot, Sarah started the lease extension process just as the lease was coming close to the crucial eighty-year mark. The legal work was concluded in September 2015. The freeholder’s fees were restricted to about 650 GBP.
Last Autumn we were e-mailed by Dr Lucy Smith , who purchased a studio apartment in Bagshot in July 2003. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative premises in Bagshot with 100 year plus lease were valued about £270,000. The average ground rent payable was £55 billed quarterly. The lease ended on 23 August 2100. Considering the 75 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Dr Nicole Dupont was assigned a lease of a one bedroom flat in Bagshot in April 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Bagshot with 100 year plus lease were valued about £173,800. The mid-range ground rent payable was £65 invoiced annually. The lease came to a finish on 12 June 2080. Given that there were 55 years left we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including professional charges.