The only way is down when it comes to Barnstaple lease terms. Barnstaple leaseholds that have a remaining term less than than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will rise.
Leasehold residencies in Barnstaple with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| 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. |
| 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 |
The lawyers that we work with handle Barnstaple lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Two years ago Stanley, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Barnstaple. Having bought his home 19 years ago, the length of the lease was of minimal interest. Luckily, he became aware that he would imminently be paying way over the odds for Extending the lease. Stanley arranged for a lease extension at the eleventh hour last June. Stanley and the freeholder via the managing agents subsequently settled on an amount of £5,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £875.
Mr and Mrs. U Roux completed a one bedroom flat in Barnstaple in February 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Barnstaple with an extended lease were valued around £270,000. The average amount of ground rent was £55 invoiced yearly. The lease ended on 9 September 2101. Given that there were 75 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
Mr M Bertrand bought a one bedroom apartment in Barnstaple in February 1996. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparable premises in Barnstaple with 100 year plus lease were in the region of £173,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated on 7 November 2081. Taking into account 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including legals.