Bagillt leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Bagillt residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bagillt you would be well advised to see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Bagillt flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Bagillt with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 Bagillt can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 Bagillt lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the freeholder of her one bedroom flat in Bagillt, Rachael started the lease extension process as the eighty year threshold was rapidly coming. The lease extension was concluded in November 2015. The landlord’s charges were kept to an absolute minimum.
In 2013 we were contacted by Dr A Watson who, having completed a basement apartment in Bagillt in June 2004. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable premises in Bagillt with a long lease were valued about £246,800. The average amount of ground rent was £60 invoiced monthly. The lease concluded in 2076. Considering the 50 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of fees.
Mr Daniel Pérez was assigned a lease of a purpose-built apartment in Bagillt in October 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Bagillt with an extended lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected yearly. The lease ran out in 2087. Given that there were 61 years unexpired we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus professional charges.