Bayswater leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Bayswater tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Bayswater you must check if your lease has between 70 and 90 years left. There are compelling reasons why a Bayswater flat owner with a lease having around eighty years left should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Bayswater lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After lengthy negotiations with the freeholder of her leasehold apartment in Bayswater, Imogen started the lease extension process as the eighty year threshold was rapidly advancing. The legal work was concluded in September 2013. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. O Wright moved into a newly refurbished flat in Bayswater in July 2011. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable homes in Bayswater with 100 year plus lease were valued about £246,800. The average amount of ground rent was £60 invoiced quarterly. The lease came to a finish on 2 June 2075. Considering the 50 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including costs.
An example of a Lease Extension case 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 37.79 years.