It’s an underpublicised certainty that a Baildon residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Baildon property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. Most flat owners in Baildon will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| 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 Baildon can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Baildon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the freeholder of her one bedroom apartment in Baildon, Naomi commenced the lease extension process just as her lease was coming close to the crucial 80-year threshold. The transaction completed in July 2007. The landlord’s charges were negotiated to less than 550 GBP.
Last Christmas we were phoned by Mr and Mrs. T Peterson , who bought a one bedroom apartment in Baildon in September 1998. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar premises in Baildon with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease came to a finish on 24 July 2098. Taking into account 72 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Mr and Mrs. N Gunderson bought a one bedroom flat in Baildon in May 2004. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Baildon with an extended lease were worth £256,600. The mid-range ground rent payable was £60 invoiced monthly. The lease lapsed in 2078. Considering the 52 years remaining we calculated the premium to the landlord for the lease extension to be within £39,000 and £45,000 plus professional charges.