When it comes to residential leasehold premises in Barnstaple, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years remaining. Anyone in Barnstaple with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has under eighty years outstanding, under the relevant Act the landlord can calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Godiva Mortgages | 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. |
| 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 Barnstaple can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 Barnstaple lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Noah, came seriously near to the 80-year threshold with the lease on his one bedroom flat in Barnstaple. Having purchased his flat twenty years previously, the unexpired term was of minimal interest. Thankfully, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Noah extended the lease at the eleventh hour last January. Noah and the freeholder via the management company eventually settled on the final figure of £6,000 . If he failed to meet the deadline, the price would have increased by a minimum £1,125.
Dr Dylan Lee bought a first floor flat in Barnstaple in January 1997. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Barnstaple with an extended lease were in the region of £250,000. The average amount of ground rent was £50 billed annually. The lease terminated on 16 February 2094. Having 68 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
In 2012 we were contacted by Mr W Patel who, having purchased a garden apartment in Barnstaple in May 2010. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar properties in Barnstaple with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced yearly. The lease ended on 10 January 2105. Taking into account 79 years remaining we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.