When it comes to domestic leasehold property in Bagillt, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years remaining. Leasehold owners in Bagillt with a lease approaching 81 years left should seriously consider extending it without delay. When the lease term has below 80 years left, under the current Act the landlord is entitled to calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Bagillt,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bagillt valuers.
Henry owned a conversion flat in Bagillt being marketed with a lease of just over fifty eight years unexpired. Henry informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and secured satisfactory resolution informally and sell the flat.
Mr and Mrs. P Parker acquired a purpose-built flat in Bagillt in September 2003. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparative premises in Bagillt with an extended lease were worth £173,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2080. Considering the 55 years unexpired we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of expenses.
Mr and Mrs. M Jones took over the lease of a purpose-built apartment in Bagillt in April 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Similar properties in Bagillt with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced yearly. The lease ended in 2091. Given that there were 66 years unexpired we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.