The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bayswater can extend the lease for an additional ninety years under legislation. Please give careful consideration before delaying your Bayswater lease extension. Postponing the costs now simply escalates the amount you will eventually be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with over 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 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Retaining our service will provide you better control over the value of your Bayswater leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Austin, came seriously close to the 80-year threshold with the lease on his garden flat in Bayswater. In buying his property two decades ago, the unexpired term was of little importance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Austin extended the lease just under the wire last June. Austin and the landlord who owned the flat above eventually settled on a premium of £6,000 . If the lease had fallen lower than 80 years, the sum would have increased by at least £850.
Dr L Richardson was assigned a lease of a newly refurbished apartment in Bayswater in September 1999. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Bayswater with an extended lease were in the region of £193,400. The average ground rent payable was £65 billed annually. The lease ended on 21 November 2085. Considering the 59 years outstanding we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of legals.
An example of a Lease Extension decision 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 related to 1 flat. The unexpired term as at the valuation date was 37.79 years.