Badminton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Badminton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Badminton you must check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Badminton leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you enhanced control over the value of your Badminton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the freeholder of her first floor apartment in Badminton, Francesca commenced the lease extension process as the eighty year deadline was fast coming. The transaction was concluded in March 2010. The freeholder’s charges were negotiated to less than 600 GBP.
Ms Poppy Stewart was assigned a lease of a studio flat in Badminton in April 2012. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Identical flats in Badminton with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 collected monthly. The lease expired in 2102. Taking into account 77 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
In 2011 we were contacted by Mrs F Smith who, having was assigned a lease of a ground floor flat in Badminton in April 2005. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Similar premises in Badminton with 100 year plus lease were in the region of £260,200. The average ground rent payable was £65 billed per annum. The lease expired in 2091. Given that there were 66 years unexpired we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus professional charges.