There is no doubt about it a leasehold property in Bagillt is a wasting asset as a result of the shortening lease. If the residual term has, beyond 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner rather than later. Many flat owners in Bagillt will qualify for this right; however a conveyancer will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Bagillt leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ethan was the the leasehold owner of a conversion flat in Bagillt being sold with a lease of a little over 59 years unexpired. Ethan informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Last Autumn we were called by Ms A Martinez , who acquired a studio apartment in Bagillt in May 2006. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparative homes in Bagillt with an extended lease were valued about £280,000. The mid-range ground rent payable was £55 billed per annum. The lease ran out in 2103. Having 78 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.
Last Spring we were called by Mrs Y Ramírez , who purchased a recently refurbished apartment in Bagillt in May 1996. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable residencies in Bagillt with an extended lease were worth £191,000. The mid-range ground rent payable was £65 invoiced annually. The lease expiry date was in 2083. Taking into account 58 years unexpired we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of expenses.