Baildon leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Baildon tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Baildon you must investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Baildon with over 100 years remaining on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 procure professional help from a lawyer and valuer 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 a wealth of experience 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.
Ethan owned a studio apartment in Baildon on the market with a lease of a little over fifty eight years unexpired. Ethan informally approached his freeholder a well known Manchester-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 an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Mrs Rebecca Rogers took over the lease of a studio flat in Baildon in May 2007. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical premises in Baildon with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected annually. The lease concluded in 2086. Given that there were 60 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including costs.
Last Christmas we were phoned by Mrs Emma Bailey , who was assigned a lease of a newly refurbished apartment in Baildon in November 2006. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Identical flats in Baildon with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease terminated in 2097. Having 71 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.