The nearer a residential lease in Barnard Castle nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Barnard Castle will qualify for this right; that being said a conveyancing solicitor can confirm 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 properties in Barnard Castle with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | 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. |
Irrespective of whether you are a tenant or a freeholder in Barnard Castle,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barnard Castle valuers.
Following protracted correspondence with the landlord of her purpose-built apartment in Barnard Castle, Melissa commenced the lease extension process just as the lease was nearing the all-important 80-year deadline. The transaction was concluded in September 2005. The landlord’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Dr Milo Lewis who, having owned a garden apartment in Barnard Castle in November 2006. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Barnard Castle with 100 year plus lease were valued about £256,600. The mid-range ground rent payable was £60 billed per annum. The lease finished on 17 May 2077. Considering the 52 years remaining we approximated the compensation to the landlord for the lease extension to be between £41,800 and £48,400 not including costs.
In 2012 we were approached by Dr Chantelle Thompson who, having bought a newly refurbished apartment in Barnard Castle in May 2001. The question was if we could approximate the price could be for a 90 year lease extension. Similar premises in Barnard Castle with 100 year plus lease were valued about £218,000. The mid-range ground rent payable was £45 invoiced annually. The lease end date was on 10 September 2088. Having 63 years left we estimated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus costs.