The closer a residential lease in Barnes nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less 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 main reason why you should extend the lease without delay. The majority of flat owners in Barnes will meet the qualifying criteria; that being said a lawyer should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Barnes with in excess of one hundred years remaining 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| 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 professional help from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Barnes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the freeholder of her leasehold apartment in Barnes, Chelsea commenced the lease extension process just as the lease was nearing the all-important eighty-year deadline. The lease extension was finalised in July 2015. The freeholder’s charges were negotiated to about 450 pounds.
In 2014 we were called by Ms Charlotte Stewart who, having moved into a studio flat in Barnes in August 2003. The question was if we could estimate the price could be for a 90 year lease extension. Comparative premises in Barnes with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 billed annually. The lease came to a finish on 7 April 2097. Taking into account 72 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
An example of a Freehold Enfranchisement case 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 unexpired lease term was 156.6 years and 66.6 years.