Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Barrow In Furness. Clearly, the period of lease left reduces over time. This is often ignored and only becomes a problem when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Barrow In Furness have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Barrow In Furness lease extension. Holding off the cost now simply increases the price you will eventually incur to extend your lease
Leasehold properties in Barrow In Furness with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Barrow In Furness,the lease extension lawyers 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.
Last year William, came precariously close to the 80-year mark with the lease on his leasehold flat in Barrow In Furness. In buying his flat two decades ago, the lease term was of minimal relevance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. William extended the lease just in the nick of time in May. William and the freeholder via the management company subsequently agreed on an amount of £6,000 . If the lease had slid below eighty years, the figure would have gone up by a minimum £1,000.
Last May we were called by Mr and Mrs. T Bernard , who moved into a studio apartment in Barrow In Furness in September 2003. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative premises in Barrow In Furness with a long lease were valued around £176,200. The average amount of ground rent was £65 billed annually. The lease lapsed in 2081. Having 56 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including legals.
In 2011 we were phoned by Mr N Clark who, having purchased a garden apartment in Barrow In Furness in May 2002. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparable homes in Barrow In Furness with 100 year plus lease were worth £237,600. The mid-range ground rent payable was £45 billed quarterly. The lease expired in 2092. Having 67 years unexpired we estimated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including costs.