Unfortunately that a Barrow In Furness residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Barrow In Furness property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Most leasehold owners in Barrow In Furness will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Barrow In Furness with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold 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 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; |
| 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Lease extensions in Barrow In Furness can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Barrow In Furness lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake was the the leasehold owner of a studio flat in Barrow In Furness on the market with a lease of just over 61 years left. Jake on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jake to invoke his statutory right. Jake procured expert advice and secured satisfactory deal without going to tribunal and sell the property.
In 2011 we were e-mailed by Mr and Mrs. P Bailey who, having moved into a one bedroom flat in Barrow In Furness in May 2001. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparative premises in Barrow In Furness with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced yearly. The lease end date was on 27 November 2082. Given that there were 56 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 plus legals.
Dr J Jackson took over the lease of a garden flat in Barrow In Furness in May 2000. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Barrow In Furness with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 billed per annum. The lease termination date was in 2092. Having 66 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.