Main reasons to commence your Barbican lease extension

Top reasons for lease extension now:

Increase your lease and increase your Barbican property value

Barbican leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Barbican residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Barbican you really ought to see if your lease has between 70 and ninety years remaining. 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 will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in Barbican with more than 100 years left 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions will not lend on a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to become nervous at around 75 years. This may cause difficulties once you wish to sell or remortgage your property as it will be effectively unmortgageable. Even though you may have no imminent intention to sell but when you do your buyer must hold off for two years before being able to start the legal procedures for a lease extension.

What makes us experts in Barbican lease extensions?

Using our service gives you enhanced control over the value of your Barbican leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Barbican Lease Extension Example Cases:

Jamie, Barbican, London,

Jamie owned a 2 bedroom apartment in Barbican on the market with a lease of fraction over sixty years unexpired. Jamie on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.

Barbican case:

Ms Francesca Wright acquired a basement flat in Barbican in April 2010. The question was if we could approximate the premium would be to prolong the lease by an additional years. Similar properties in Barbican with 100 year plus lease were worth £265,000. The average ground rent payable was £50 collected per annum. The lease end date was in 2100. Taking into account 74 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.