For anyone whose Baschurch flat is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with undertake Baschurch 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.
Alfie was the the leasehold proprietor of a 2 bedroom flat in Baschurch on the market with a lease of a little over 59 years remaining. Alfie informally 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 an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Alfie to exercise his statutory right. Alfie procured expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Last Christmas we were approach by Mr and Mrs. D Bonnet , who took over the lease of a one bedroom flat in Baschurch in August 1997. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Identical premises in Baschurch with a long lease were worth £260,000. The mid-range ground rent payable was £50 billed per annum. The lease expired in 2097. Considering the 72 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
Last Christmas we were e-mailed by Mrs Lucy Ward , who was assigned a lease of a ground floor apartment in Baschurch in June 2003. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Baschurch with an extended lease were in the region of £256,600. The average ground rent payable was £60 invoiced per annum. The lease terminated in 2077. Given that there were 52 years left we approximated the premium to the landlord to extend the lease to be within £39,000 and £45,000 not including expenses.