There is no doubt about it a leasehold flat or house in Barlborough is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Barlborough will qualify for this right; that being said a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Barlborough with in excess of one hundred years remaining 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Barlborough leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the landlord of her garden apartment in Barlborough, Alicia started the lease extension process just as her lease was coming close to the crucial 80-year threshold. The transaction was concluded in April 2013. The landlord’s fees were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. C Laurent who, having owned a newly refurbished apartment in Barlborough in January 2003. The question was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparative properties in Barlborough with an extended lease were valued about £206,200. The average amount of ground rent was £55 billed every twelve months. The lease ended on 9 April 2080. Taking into account 56 years left we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
Mr and Mrs. V Roberts owned a basement flat in Barlborough in October 2005. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical properties in Barlborough with 100 year plus lease were valued around £300,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed on 12 April 2100. Considering the 76 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.