There is no doubt about it a leasehold property in Baildon is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. Most flat owners in Baildon will qualify for this right; nevertheless a lawyer should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Baildon leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her leasehold apartment in Baildon, Nicole initiated the lease extension process just as the lease was approaching the crucial 80-year threshold. The legal work was finalised in July 2011. The landlord’s costs were kept to an absolute minimum.
Last Spring we were e-mailed by Dr H Clark , who bought a studio flat in Baildon in May 2007. We are asked if we could estimate the price could be for a 90 year lease extension. Similar premises in Baildon with an extended lease were valued about £250,000. The average ground rent payable was £50 collected monthly. The lease lapsed in 2094. Having 69 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. L Thompson acquired a studio apartment in Baildon in August 2005. We are asked if we could approximate the price could be for a 90 year lease extension. Similar residencies in Baildon with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease expired on 16 April 2105. Having 80 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.