As the length of the unexpired term of a Barrow In Furness domestic lease diminished so does its value and therefore the value of your property. If the residual term has, over one hundred years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Barrow In Furness will qualify for this right; nevertheless a lawyer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Barrow In Furness can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 dealing with 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.
Last Winter Joseph, came dangerously near to the 80-year threshold with the lease on his first floor flat in Barrow In Furness. Having bought his flat 18 years ago, the unexpired term was of little concern. As luck would have it, he became aware that he would soon be paying an escalated premium for a lease extension. Joseph arranged for a lease extension just under the wire in January. Joseph and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had dropped lower than 80 years, the sum would have increased by a minimum £1,050.
Mr and Mrs. L White owned a purpose-built flat in Barrow In Furness in June 2004. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical residencies in Barrow In Furness with 100 year plus lease were valued about £246,800. The mid-range amount of ground rent was £60 collected yearly. The lease came to a finish in 2076. Taking into account 50 years outstanding we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus professional charges.
Last month we were contacted by Mr I Turner , who acquired a ground floor flat in Barrow In Furness in May 2002. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Barrow In Furness with an extended lease were in the region of £203,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease expired on 3 May 2087. Given that there were 61 years as a residual term we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including expenses.