When it comes to long leasehold premises in Barnehurst, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Residents in Barnehurst with a lease approaching 81 years left should seriously think of extending it sooner rather than later. Once a lease has under 80 years left, under the current legislation the landlord is entitled to calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Barnehurst with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Barnehurst,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barnehurst valuers.
Arthur owned a studio flat in Barnehurst being marketed with a lease of a little over sixty years outstanding. Arthur on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Arthur to exercise his statutory right. Arthur procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
Last Christmas we were contacted by Ms Sarah Martinez , who purchased a basement flat in Barnehurst in June 2007. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative residencies in Barnehurst with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £55 collected annually. The lease ran out in 2082. Considering the 56 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
An example of a Lease Extension case for a Barnehurst residence is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case related to 13 flats. The unexpired residue of the current lease was 76 years.