The market value of Baguley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is less than eighty years
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
Lease extensions in Baguley can be a difficult process. We recommend you get guidance from a conveyancer 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 a wealth of experience dealing with Baguley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua owned a studio flat in Baguley being marketed with a lease of a few days over fifty eight years unexpired. Joshua on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mrs Madeleine Scott completed a first floor flat in Baguley in May 2010. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative premises in Baguley with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease end date was in 2103. Having 78 years outstanding we approximated the compensation to the landlord to extend the lease to be between £7,600 and £8,800 not including legals.
In 2010 we were called by Mr and Mrs. B Nguyen who, having took over the lease of a recently refurbished apartment in Baguley in March 1996. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Baguley with a long lease were valued around £270,000. The mid-range amount of ground rent was £65 collected per annum. The lease terminated in 2093. Taking into account 68 years outstanding we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.