The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Batheaston can extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Batheaston lease extension. Putting off the costs now simply escalates the premium you will eventually have to pay to extend the lease.
Leasehold properties in Batheaston with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Batheaston can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 a wealth of experience procuring Batheaston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Max, came seriously close to the eighty-year mark with the lease on his basement apartment in Batheaston. Having purchased his property twenty years ago, the lease term was of minimal importance. by good luck, he noticed he needed to take action soon on Extending the lease. Max extended the lease just under the wire last April. Max and the freeholder via the managing agents ultimately agreed on an amount of £5,000 . If the lease had dropped to less than 80 years, the premium would have escalated by a minimum £1,150.
In 2011 we were e-mailed by Mr and Mrs. L Roux who, having bought a ground floor apartment in Batheaston in July 2003. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable homes in Batheaston with a long lease were worth £225,800. The average ground rent payable was £60 billed quarterly. The lease expired on 25 January 2086. Having 60 years remaining we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of fees.
Mr and Mrs. N James bought a ground floor flat in Batheaston in February 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Similar premises in Batheaston with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 collected per annum. The lease ran out on 27 October 2106. Having 80 years unexpired we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.