With a residential leasehold property in Barrow In Furness, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years remaining. Residents in Barrow In Furness with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has under 80 years left, under the current Act the landlord is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Barrow In Furness,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barrow In Furness valuers.
Finley owned a 2 bedroom apartment in Barrow In Furness being sold with a lease of fraction over sixty years outstanding. Finley informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Finley to exercise his statutory right. Finley obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last Spring we were called by Dr K Nguyen , who purchased a first floor flat in Barrow In Furness in March 2011. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative flats in Barrow In Furness with 100 year plus lease were worth £227,800. The average amount of ground rent was £45 invoiced annually. The lease expired on 2 June 2091. Taking into account 65 years remaining we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.
Last year we were approach by Dr Tyler Bailey , who was assigned a lease of a one bedroom apartment in Barrow In Furness in September 1999. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Barrow In Furness with an extended lease were in the region of £270,000. The average ground rent payable was £55 collected annually. The lease expired on 11 February 2102. Taking into account 76 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.