Baildon leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Baildon will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Baildon can be a difficult process. We recommend you secure guidance from a lawyer 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 dealing with Baildon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Jude, came dangerously close to the 80-year threshold with the lease on his one bedroom apartment in Baildon. In buying his flat two decades ago, the lease term was of minimal importance. Fortunately, he noticed he needed to take steps soon on a lease extension. Jude arranged for a lease extension at the eleventh hour in July. Jude and the landlord subsequently agreed on a premium of £5,000 . If the lease had descended lower than eighty years, the figure would have gone up by at least £1,000.
In 2012 we were e-mailed by Mr C Carter who, having purchased a one bedroom flat in Baildon in October 2008. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical premises in Baildon with a long lease were in the region of £237,600. The average ground rent payable was £45 invoiced monthly. The lease expired in 2093. Taking into account 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus fees.
Mr and Mrs. O Thomas purchased a one bedroom flat in Baildon in April 2010. We are asked if we could estimate the price would be for a 90 year lease extension. Identical flats in Baildon with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 billed quarterly. The lease came to a finish on 27 January 2104. Given that there were 78 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.