Baschurch leases on domestic deteriorating in value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Baschurch will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are prescribed timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Baschurch with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 be at least 75 years plus the term of the mortgage at the outset 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. |
Using our service will provide you increased control over the value of your Baschurch leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Arthur, came seriously close to the 80-year mark with the lease on his ground floor apartment in Baschurch. Having bought his property twenty years ago, the lease term was of minimal concern. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Arthur extended the lease just under the wire last January. Arthur and the freeholder via the managing agents ultimately agreed on sum of £6,000 . If he had missed the deadline, the sum would have become more costly by a minimum £1,100.
Mr W Clark acquired a one bedroom flat in Baschurch in September 2010. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparative properties in Baschurch with an extended lease were in the region of £250,000. The average amount of ground rent was £50 billed annually. The lease lapsed in 2096. Given that there were 70 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2014 we were approached by Dr M Scott who, having took over the lease of a one bedroom flat in Baschurch in January 2008. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative premises in Baschurch with an extended lease were in the region of £246,800. The average ground rent payable was £60 billed every twelve months. The lease ended in 2076. Considering the 50 years left we calculated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including fees.