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

With a domestic leasehold premises in Barbican, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are fewer than eighty years remaining. Residents in Barbican with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has below eighty years remaining, under the current statute the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is due.

Barbican property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.

Lenders may not issue a mortgage with a short lease

Banks and Building Societies have set criteria when loaning funds secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term goes below a specified unexpired lease term. Many Lending institutions will not consider property with a remaining term of less than seventy years as adequate security. As well as impacting your ability to sell, it is also relevant if you are intending to remortgage your Barbican home.

Why use us for your lease extension in Barbican?

Using our service gives you better control over the value of your Barbican leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors 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:

Dexter, Barbican, London,

Dexter owned a 2 bedroom flat in Barbican being marketed with a lease of just over 61 years remaining. Dexter on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Dexter to invoke his statutory right. Dexter procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.

Barbican case:

In 2011 we were contacted by Mrs W David who, having took over the lease of a one bedroom apartment in Barbican in November 2006. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Barbican with an extended lease were in the region of £235,200. The average ground rent payable was £45 billed every twelve months. The lease end date was on 17 October 2092. Having 66 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.