Top reasons for 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 decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Barbican tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Barbican you should see if your lease has between 70 and ninety years remaining. There are good reasons why a Barbican flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay

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

Leasehold premises in Barbican with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not finance a property with a short lease

Most mortgage lenders have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly under seventy years as they are deemed to be deficient security.

Why use us for your lease extension in Barbican?

Engaging our service will provide you better control over the value of your Barbican leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers 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:

Adam, Barbican, London,

Adam was the the leasehold owner of a conversion flat in Barbican being sold with a lease of a few days over 72 years outstanding. Adam on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Adam to exercise his statutory right. Adam procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.

Barbican case:

Last month we were phoned by Dr E Alexander , who took over the lease of a ground floor flat in Barbican in November 1997. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Barbican with an extended lease were valued about £166,400. The average ground rent payable was £60 billed yearly. The lease terminated on 1 July 2080. Given that there were 54 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.