The only way is down when it comes to Bayswater lease terms. Bayswater leaseholds that have a lease term lower than eighty years will de-escalate in market price even faster, and the cost to extend your lease will increase.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Engaging our service gives you enhanced control over the value of your Bayswater leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Caleb, came precariously close to the eighty-year threshold with the lease on his two bedroom apartment in Bayswater. Having purchased his home two decades ago, the lease term was of minimal concern. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Caleb arranged for a lease extension just under the wire last January. Caleb and the landlord who owned the flat above in the end settled on a premium of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £850.
Mrs D Rose was assigned a lease of a first floor apartment in Bayswater in April 1998. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative residencies in Bayswater with an extended lease were in the region of £220,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expired on 5 April 2089. Taking into account 64 years remaining we calculated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 not including expenses.
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 unexpired lease term was 37.79 years.