Unfortunately that a Baldock residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Baldock property prices.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 falls below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Baldock 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 be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Baldock with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Santander | |
| The Mortgage Works |
Lease extensions in Baldock can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 in-depth market knowledge dealing with Baldock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jude owned a conversion flat in Baldock being marketed with a lease of a few days over 59 years left. Jude on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jude to invoke his statutory right. Jude obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2013 we were approached by Ms Courtney Rose who, having owned a first floor flat in Baldock in March 2011. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar premises in Baldock with 100 year plus lease were in the region of £189,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease concluded on 28 October 2079. Having 53 years remaining we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including professional charges.
In 2013 we were contacted by Ms S Baker who, having acquired a ground floor flat in Baldock in April 2002. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparable premises in Baldock with a long lease were worth £290,000. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded in 2099. Considering the 73 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.