Great Baddow leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Great Baddow will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you increased control over the value of your Great Baddow leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted correspondence with the landlord of her first floor flat in Great Baddow, Madeleine started the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was concluded in July 2007. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. H Rogers owned a ground floor apartment in Great Baddow in March 2000. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Great Baddow with an extended lease were valued around £245,000. The mid-range ground rent payable was £50 billed annually. The lease ended on 22 May 2094. Having 68 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
In 2011 we were approached by Mr R Robinson who, having bought a one bedroom apartment in Great Baddow in January 2003. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Great Baddow with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £55 billed monthly. The lease elapsed on 2 August 2105. Considering the 79 years as a residual term we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.