Main reasons to commence your Barbican lease extension

Top reasons for lease extension now:

Increase your lease and increase your Barbican property value

When it comes to domestic leasehold premises in Barbican, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Residents in Barbican with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has under 80 years outstanding, under the relevant legislation the landlord can calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.

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

It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders may not grant a mortgage with a short lease

Lending institutions have specific criteria when lending monies secured on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term slips below a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining term of less than 75 years as adequate security. In addition to impacting your ability to sell, it is also relevant where you are intending to remortgage your Barbican property.

Why use us for your lease extension in Barbican?

Engaging our service gives you increased control over the value of your Barbican leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Barbican Lease Extension Example Cases:

Jude, Barbican, London

Last October Jude, started to get near to the 80-year mark with the lease on his garden flat in Barbican. In buying his home 18 years previously, the unexpired term was of minimal relevance. Thankfully, he recognised he needed to take steps soon on a lease extension. Jude extended the lease at the eleventh hour in July. Jude and the landlord who owned the flat above eventually settled on a premium of £5,500 . If he had missed the deadline, the figure would have escalated by at least £1,075.

Barbican case:

In 2013 we were contacted by Mr and Mrs. H André who, having owned a recently refurbished flat in Barbican in March 2011. The question was if we could estimate the price would likely be for a ninety year lease extension. Similar residencies in Barbican with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease expired in 2096. Considering the 70 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.