Unfortunately that a Batheaston residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Batheaston property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term dips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Batheaston will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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 |
Using our service gives you better control over the value of your Batheaston leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago William, started to get close to the eighty-year threshold with the lease on his first floor flat in Batheaston. In buying his property two decades ago, the length of the lease was of little relevance. Thankfully, he realised he needed to take action soon on Extending the lease. William extended the lease just under the wire in September. William and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If the lease had fallen lower than 80 years, the price would have become more exhorbitant by at least £1,025.
Last November we were contacted by Dr Jackson Michel , who purchased a garden flat in Batheaston in April 1995. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Batheaston with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced monthly. The lease expired in 2098. Taking into account 72 years unexpired we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
In 2011 we were approached by Ms Kelsey Taylor who, having took over the lease of a one bedroom apartment in Batheaston in January 2012. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative flats in Batheaston with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed on 8 February 2087. Considering the 61 years left we approximated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of costs.