Top reasons for Barbican lease extension

Main reasons to commence your Barbican lease extension today:

Increase your lease and increase your Barbican property value

As the length of the unexpired term of a Barbican domestic lease decreases so does its value and therefore the value of your property. If the lease has, in excess of one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Barbican will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

Barbican property with a lease extension is almost the same value as a freehold

Leasehold premises in Barbican with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not grant a mortgage on a short lease

Most high street banks are tightening their criteria and many now require flats to have at least 60 if not 70 years left at the end of the mortgage. Considering plenty of flats in Barbican were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to obtain a mortgage.

Why use us for your lease extension in Barbican?

The conveyancing solicitors that we work with undertake Barbican lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Barbican Lease Extension Example Cases:

Ben, Barbican, London,

Ben owned a studio apartment in Barbican on the market with a lease of fraction over fifty eight years outstanding. Ben on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ben to invoke his statutory right. Ben obtained expert advice and secured satisfactory deal informally and sell the property.

Barbican case:

Last Autumn we were e-mailed by Mr and Mrs. W Hill , who owned a recently refurbished apartment in Barbican in January 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative flats in Barbican with a long lease were in the region of £186,000. The average ground rent payable was £65 billed annually. The lease elapsed in 2084. Considering the 58 years left we calculated the premium to the landlord to extend the lease to be between £24,700 and £28,600 not including costs.