Bayswater leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Bayswater will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Bayswater with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
Lease extensions in Bayswater can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Bayswater 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 Aiden, started to get near to the eighty-year mark with the lease on his studio flat in Bayswater. Having purchased his property two decades ago, the unexpired term was of no interest. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Aiden was able to extend his lease just under the wire last July. Aiden and the landlord eventually agreed on sum of £5,000 . If he not met the deadline, the price would have increased by a minimum £925.
In 2011 we were phoned by Ms Millie Clarke who, having was assigned a lease of a ground floor apartment in Bayswater in June 1996. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar flats in Bayswater with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease elapsed in 2098. Considering the 73 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
An example of a Lease Extension case for a Bayswater flat is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case affected 1 flat. The number of years remaining on the existing lease(s) was 37.79 years.