When it comes to residential leasehold property in Bayswater, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than eighty years remaining. Anyone in Bayswater with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has under eighty years remaining, under the current statute the landlord can calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Mortgage term plus 25 years |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| Royal Bank of Scotland | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| 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. |
Engaging our service gives you better control over the value of your Bayswater 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.
Half a year ago Mason, started to get close to the eighty-year mark with the lease on his leasehold flat in Bayswater. In buying his property two decades ago, the unexpired term was of minimal concern. Luckily, he recognised he would imminently be paying an escalated premium for a lease extension. Mason was able to extend his lease just in the nick of time last January. Mason and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If the lease had gone below 80 years, the amount would have gone up by a minimum £975.
Last Winter we were called by Mrs G Morgan , who acquired a one bedroom apartment in Bayswater in January 2002. We are asked if we could estimate the price would be for a 90 year lease extension. Identical premises in Bayswater with a long lease were worth £166,400. The mid-range ground rent payable was £60 billed per annum. The lease elapsed in 2073. Considering the 54 years left we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including expenses.
An example of a Lease Extension matter before the tribunal for a Bayswater property 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 remaining number of years on the lease was 37.79 years.