Barbican leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Barbican will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Barbican with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Barbican,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barbican valuers.
Ali owned a conversion flat in Barbican on the market with a lease of a few days over 72 years remaining. Ali on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali obtained expert advice and secured satisfactory resolution informally and sell the flat.
In 2012 we were contacted by Dr N Evans who, having owned a studio apartment in Barbican in July 2002. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Barbican with a long lease were worth £285,000. The average ground rent payable was £55 billed quarterly. The lease end date was on 11 November 2105. Considering the 80 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
An example of a Lease Extension decision for a Barbican residence is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case affected 2 flats. The unexpired residue of the current lease was 72.39 years.