Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ingleby Barwick. Inevitably, the term of lease remaining reduces over time. This is often ignored and only becomes a problem when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Ingleby Barwick have the right to extend the lease for a further ninety years in accordance with legislation. You should give careful consideration before delaying your Ingleby Barwick lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold properties in Ingleby Barwick with over 100 years outstanding on the lease are often referred to as ‘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 reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ingleby Barwick can be a difficult process. We recommend you secure 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 Ingleby Barwick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her basement apartment in Ingleby Barwick, Bethan commenced the lease extension process just as her lease was approaching the critical eighty-year threshold. The transaction was concluded in September 2007. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were e-mailed by Dr W Howard , who bought a studio flat in Ingleby Barwick in May 2008. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Similar premises in Ingleby Barwick with 100 year plus lease were valued about £166,400. The average ground rent payable was £60 collected quarterly. The lease came to a finish on 24 May 2079. Considering the 54 years remaining we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of fees.
In 2013 we were contacted by Mr Isaac Martínez who, having purchased a purpose-built flat in Ingleby Barwick in July 2012. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparable residencies in Ingleby Barwick with a long lease were valued around £227,800. The average ground rent payable was £45 collected quarterly. The lease ran out in 2090. Considering the 65 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.