Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Barrow In Furness. Inevitably, the length of lease left shortens over time. This may slip by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Barrow In Furness have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful consideration before putting off your Barrow In Furness lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| 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. |
Retaining our service will provide you better control over the value of your Barrow In Furness leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Gabriel, came very near to the 80-year mark with the lease on his studio apartment in Barrow In Furness. In buying his flat 18 years ago, the unexpired term was of no significance. by good luck, he noticed he would imminently be paying way over the odds for Extending the lease. Gabriel extended the lease just under the wire in March. Gabriel and the landlord who owned the flat above ultimately agreed on a premium of £6,000 . If he failed to meet the deadline, the figure would have escalated by at least £975.
Mr and Mrs. I Martínez completed a garden apartment in Barrow In Furness in September 2012. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Similar residencies in Barrow In Furness with 100 year plus lease were valued around £280,000. The average ground rent payable was £55 invoiced monthly. The lease came to a finish in 2105. Having 79 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
In 2014 we were called by Ms Elizabeth Ali who, having moved into a ground floor flat in Barrow In Furness in November 2007. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative flats in Barrow In Furness with 100 year plus lease were valued about £191,000. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed in 2084. Considering the 58 years left we approximated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of expenses.