Bartley Green residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Bartley Green with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Bartley Green leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Milo was the the leasehold proprietor of a 2 bedroom flat in Bartley Green on the market with a lease of just over 72 years left. Milo informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were approached by Ms C Harris who, having completed a studio apartment in Bartley Green in June 1997. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable flats in Bartley Green with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced annually. The lease lapsed in 2096. Taking into account 71 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
Last month we were contacted by Mr Riley Parker , who purchased a garden flat in Bartley Green in May 2001. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable premises in Bartley Green with 100 year plus lease were worth £225,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out in 2085. Given that there were 60 years unexpired we calculated the compensation to the landlord to extend the lease to be between £25,700 and £29,600 exclusive of costs.