It’s an underpublicised truth that a Barnehurst residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Barnehurst property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be payable. Most flat owners in Barnehurst will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Virgin |
Lease extensions in Barnehurst can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
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 in-depth market knowledge dealing with Barnehurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the freeholder of her first floor flat in Barnehurst, Sophie started the lease extension process as the 80 year threshold was quickly coming. The legal work was finalised in September 2014. The freeholder’s charges were negotiated to a tad over four hundred pounds.
Last month we were e-mailed by Mr and Mrs. N Alexander , who owned a purpose-built flat in Barnehurst in November 1996. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable homes in Barnehurst with a long lease were valued about £300,000. The average amount of ground rent was £50 invoiced monthly. The lease terminated in 2102. Given that there were 76 years remaining we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.
An example of a Lease Extension decision for a Barnehurst property 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 was in relation to 13 flats. The unexpired term was 76 years.