There is no doubt about it a leasehold flat or house in Barnstaple is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Barnstaple will qualify for this right; nevertheless a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Barnstaple with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Barnstaple leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the freeholder of her leasehold flat in Barnstaple, Georgia started the lease extension process as the eighty year deadline was quickly advancing. The legal work was concluded in April 2012. The landlord’s costs were restricted to under 550 GBP.
In 2010 we were called by Mr and Mrs. T Morris who, having completed a garden flat in Barnstaple in September 2005. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable properties in Barnstaple with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 collected monthly. The lease end date was on 21 April 2094. Considering the 69 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Mrs Natalie Rose completed a garden apartment in Barnstaple in January 1999. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable premises in Barnstaple with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease elapsed in 2105. Having 80 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.