Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Barnes. Clearly, the period of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Barnes have the legal entitlement to extend the lease for a further ninety years under legislation. You should give due deliberation before putting off your Barnes lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Barnes can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 procuring Barnes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Arthur, started to get near to the eighty-year threshold with the lease on his basement apartment in Barnes. Having bought his flat two decades ago, the length of the lease was of little bearing. Fortunately, he noticed he would soon be paying way over the odds for a lease extension. Arthur was able to extend his lease at the eleventh hour in May. Arthur and the freeholder ultimately agreed on an amount of £6,000 . If he had missed the deadline, the price would have increased by a minimum £925.
Last Winter we were phoned by Mrs Alexandra Norbert , who took over the lease of a newly refurbished flat in Barnes in January 2010. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparable premises in Barnes with a long lease were in the region of £264,000. The mid-range ground rent payable was £60 invoiced annually. The lease lapsed on 19 September 2078. Given that there were 53 years left we approximated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 not including costs.
An example of a Freehold Enfranchisement decision for a Barnes residence is 25 Petley Road in February 2010. The Tribunal determined that the price payable for the freehold of the subject premises should be £18,760. This case was in relation to 2 flats. The remaining number of years on the lease was 156.6 years and 66.6 years.