Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Barrow In Furness. Inevitably, the period of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Barrow In Furness have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Please give due consideration before putting off your Barrow In Furness lease extension. Putting off that expense now likely increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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.
Callum was the the leasehold owner of a 2 bedroom apartment in Barrow In Furness being marketed with a lease of fraction over sixty years left. Callum informally spoke with his landlord a well known local-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 a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
In 2013 we were contacted by Mrs Victoria Hall who, having bought a garden flat in Barrow In Furness in May 2008. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar flats in Barrow In Furness with an extended lease were worth £186,000. The mid-range ground rent payable was £65 billed yearly. The lease finished in 2084. Having 58 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of expenses.
Mr and Mrs. H Bernard took over the lease of a studio flat in Barrow In Furness in February 1995. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparable homes in Barrow In Furness with a long lease were worth £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease termination date was on 18 August 2095. Considering the 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.