Baldock leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Flat owners in Baldock will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Baldock 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.
Last October Henry, started to get close to the eighty-year mark with the lease on his leasehold apartment in Baldock. Having bought his flat twenty years ago, the length of the lease was of little significance. Thankfully, he recognised he needed to take action soon on a lease extension. Henry arranged for a lease extension just in the nick of time in May. Henry and the landlord who owned the flat above subsequently settled on sum of £5,000 . If the lease had gone to less than 80 years, the sum would have gone up by a minimum £1,025.
Mr and Mrs. P Girard bought a one bedroom apartment in Baldock in August 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative premises in Baldock with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 billed yearly. The lease expiry date was in 2102. Having 77 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
Mrs A Phillips took over the lease of a ground floor flat in Baldock in February 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical properties in Baldock with an extended lease were worth £260,200. The average ground rent payable was £65 invoiced every twelve months. The lease concluded on 3 February 2091. Having 66 years unexpired we estimated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 not including costs.