The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Great Baddow may extend the lease for a further ninety years in accordance with statute. Please give careful consideration before delaying your Great Baddow lease extension. Putting off the costs today simply increases the premium you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
Using our service will provide you increased control over the value of your Great Baddow leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jonathan, came perilously close to the eighty-year threshold with the lease on his ground floor flat in Great Baddow. In buying his property two decades ago, the length of the lease was of no bearing. by good luck, he recognised he needed to take action soon on a lease extension. Jonathan was able to extend his lease just in the nick of time last June. Jonathan and the landlord eventually settled on the final figure of £6,000 . If he had missed the deadline, the figure would have increased by a minimum £900.
In 2013 we were contacted by Mr B Fournier who, having completed a one bedroom apartment in Great Baddow in July 1998. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Great Baddow with 100 year plus lease were worth £261,600. The mid-range ground rent payable was £60 invoiced annually. The lease lapsed on 25 February 2078. Taking into account 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 not including legals.
Mr and Mrs. R Moore bought a recently refurbished apartment in Great Baddow in November 2000. 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. Identical residencies in Great Baddow with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 billed per annum. The lease lapsed in 2089. Given that there were 63 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 plus fees.