Baldock leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Baldock enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Baldock you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| 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 conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Off the back of protracted discussions with the freeholder of her purpose-built apartment in Baldock, Jodie started the lease extension process as the eighty year deadline was fast advancing. The lease extension completed in November 2006. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. I Díaz purchased a first floor apartment in Baldock in November 2004. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable properties in Baldock with an extended lease were valued around £280,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease terminated in 2095. Given that there were 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.
Dr O Allen completed a purpose-built apartment in Baldock in November 2009. The question was if we could estimate the premium would be to prolong the lease by 90 years. Comparative properties in Baldock with an extended lease were valued about £223,400. The average ground rent payable was £60 collected per annum. The lease terminated in 2084. Having 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of expenses.