Chances are that where you own a flat in Baildon you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Baildon 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.
Edward owned a 2 bedroom flat in Baildon being marketed with a lease of a few days over 59 years left. Edward on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Edward to exercise his statutory right. Edward procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Dr A Bell took over the lease of a first floor flat in Baildon in January 2006. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable residencies in Baildon with a long lease were valued around £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease lapsed on 23 February 2075. Taking into account 50 years outstanding we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of legals.
Last March we were e-mailed by Dr Isabella Flores , who owned a first floor apartment in Baildon in October 2003. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical flats in Baildon with 100 year plus lease were in the region of £203,200. The mid-range ground rent payable was £65 invoiced monthly. The lease finished in 2086. Given that there were 61 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including costs.