Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Bagshot. Inevitably, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Bagshot have the right to extend the lease for an additional ninety years under legislation. You should give careful deliberation before delaying your Bagshot lease extension. Putting off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold premises in Bagshot with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Bagshot,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bagshot valuers.
Two years ago Luke, came precariously near to the 80-year threshold with the lease on his leasehold flat in Bagshot. In buying his property 18 years previously, the lease term was of minimal importance. by good luck, he noticed he needed to take steps soon on a lease extension. Luke extended the lease at the eleventh hour in September. Luke and the freeholder subsequently agreed on sum of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,150.
Mr Caleb Harris completed a garden apartment in Bagshot in January 2001. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical premises in Bagshot with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed annually. The lease terminated on 6 July 2096. Having 70 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2012 we were e-mailed by Mr Dylan Walker who, having acquired a basement apartment in Bagshot in September 2008. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative residencies in Bagshot with a long lease were worth £246,800. The average amount of ground rent was £60 invoiced per annum. The lease concluded on 12 October 2076. Considering the 50 years left we calculated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 not including legals.