North Baddesley leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease falls lower than eighty years - otherwise a higher premium will be payable. Flat owners in North Baddesley will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Lease extensions in North Baddesley can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with North Baddesley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the freeholder of her leasehold flat in North Baddesley, Melissa started the lease extension process as the 80 year threshold was fast coming. The legal work was finalised in May 2007. The landlord’s costs were negotiated to approximately 650 GBP.
In 2012 we were called by Dr Isobel Wood who, having purchased a one bedroom apartment in North Baddesley in March 2012. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative homes in North Baddesley with an extended lease were worth £213,600. The average ground rent payable was £60 billed monthly. The lease ended on 27 June 2082. Having 57 years remaining we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus costs.
In 2013 we were called by Dr Hollie Gunderson who, having moved into a ground floor flat in North Baddesley in October 2008. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in North Baddesley with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 invoiced yearly. The lease came to a finish on 27 September 2102. Given that there were 77 years unexpired we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.