The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Barkingside can extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Barkingside lease extension. Postponing that expense today simply escalates the price you will ultimately have to pay for a lease extension.
Leasehold residencies in Barkingside with more than 100 years left on the lease are sometimes 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 service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Engaging our service gives you increased control over the value of your Barkingside leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the freeholder of her two bedroom apartment in Barkingside, Yasmin started the lease extension process just as the lease was approaching the critical eighty-year mark. The legal work was concluded in July 2008. The landlord’s costs were restricted to approximately 550 GBP.
Dr M Nguyen acquired a newly refurbished flat in Barkingside in August 1999. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparable homes in Barkingside with an extended lease were in the region of £246,800. The average ground rent payable was £60 collected annually. The lease elapsed in 2075. Taking into account 50 years outstanding we estimated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus costs.
An example of a Lease Extension decision for a Barkingside flat is 104 Coventry Road in July 2014. The Tribunal determined that the lease extension permium should be £22,896.15 This case affected 1 flat. The unexpired term as at the valuation date was 60.29 years.