With a long leasehold property in North Baddesley, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years remaining. Anyone in North Baddesley with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has below eighty years outstanding, under the relevant statute the freeholder can calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 will provide you increased control over the value of your North Baddesley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Hugo, started to get close to the 80-year mark with the lease on his leasehold apartment in North Baddesley. In buying his home two decades ago, the length of the lease was of no importance. Thankfully, he realised he needed to take action soon on a lease extension. Hugo extended the lease just under the wire last March. Hugo and the freeholder in the end agreed on sum of £6,000 . If the lease had descended lower than eighty years, the premium would have escalated by at least £900.
Mr and Mrs. A Rose owned a garden apartment in North Baddesley in January 1995. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical properties in North Baddesley with a long lease were valued about £240,600. The mid-range amount of ground rent was £65 billed yearly. The lease concluded in 2088. Given that there were 62 years remaining we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.
Dr Arthur François moved into a one bedroom flat in North Baddesley in April 2002. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable premises in North Baddesley with 100 year plus lease were in the region of £174,200. The average ground rent payable was £55 billed quarterly. The lease concluded in 2077. Given that there were 51 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.