Unfortunately that a North Baddesley residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the North Baddesley property prices.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in North Baddesley will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
The conveyancing solicitors that we work with handle North Baddesley 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.
Half a year ago Finn, started to get close to the eighty-year mark with the lease on his purpose- built apartment in North Baddesley. Having bought his property 18 years ago, the length of the lease was of little concern. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. Finn was able to extend his lease just under the wire last January. Finn and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If the lease had dropped lower than eighty years, the amount would have gone up by at least £1,075.
In 2009 we were phoned by Dr Alice Rodríguez who, having took over the lease of a garden flat in North Baddesley in April 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparable flats in North Baddesley with a long lease were worth £250,400. The average ground rent payable was £65 billed annually. The lease lapsed in 2089. Having 64 years outstanding we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of fees.
Last year we were contacted by Dr Harrison Vincent , who was assigned a lease of a recently refurbished flat in North Baddesley in July 2012. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar flats in North Baddesley with a long lease were valued about £189,000. The average amount of ground rent was £55 collected annually. The lease expired on 1 September 2078. Having 53 years left we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including legals.