Barbican leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Barbican enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Barbican you would be well advised to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold properties in Barbican with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Barbican,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barbican valuers.
Leo was the the leasehold proprietor of a 2 bedroom flat in Barbican being marketed with a lease of just over 61 years left. Leo on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Leo to invoke his statutory right. Leo procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
In 2010 we were e-mailed by Mr and Mrs. P White who, having took over the lease of a first floor flat in Barbican in June 2004. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable premises in Barbican with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease terminated on 21 September 2105. Considering the 79 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
An example of a Lease Extension decision for a Barbican premises 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 related to 2 flats. The unexpired residue of the current lease was 72.39 years.