Main reasons to commence your Barbican lease extension

Main reasons to start your Barbican lease extension today:

Increase your lease and increase your Barbican property value

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. Most 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 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Barbican with over 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies will not issue a mortgage on a short lease

Most mortgage companies require a lengthy amount of time left on any leasehold residence before they will contemplate it as adequate security. Even if you don't require a mortgage, you should be mindful that it is probable that someone wanting to acquire your property in the future might well do, so in the event that they are not able to secure a mortgage, then the financial worth of your property could suffer. In the last decade many banks and building societies have increased the required minimum lease length that they are prepared to grant a mortgage on

Get in touch with one of our Barbican lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.

Barbican Lease Extension Example Cases:

Gabriel, Barbican, London

Last year Gabriel, came dangerously close to the eighty-year mark with the lease on his ground floor flat in Barbican. In buying his property 19 years ago, the unexpired term was of little interest. by good luck, he recognised he needed to take steps soon on Extending the lease. Gabriel extended the lease just under the wire in June. Gabriel and the freeholder via the management company eventually agreed on a premium of £6,000 . If the lease had dropped to less than eighty years, the premium would have gone up by a minimum £850.

Barbican case:

Mr and Mrs. D Murphy completed a one bedroom apartment in Barbican in February 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Barbican with 100 year plus lease were valued about £210,600. The mid-range amount of ground rent was £45 billed per annum. The lease ended in 2088. Given that there were 62 years remaining we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus professional charges.