Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Barking. Inevitably, the period of lease left shortens over time. This is often ignored and only raises itself as an issue when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Barking have the legal entitlement to extend the lease for a further ninety years under legislation. You should give careful consideration before putting off your Barking lease extension. Holding off the cost now simply increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| Skipton Building Society |
Engaging our service gives you enhanced control over the value of your Barking leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian owned a studio apartment in Barking on the market with a lease of just over 61 years left. Sebastian on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Dr R Sánchez acquired a studio apartment in Barking in November 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative residencies in Barking with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 collected every twelve months. The lease expired in 2090. Given that there were 64 years remaining we calculated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 plus costs.
An example of a Lease Extension case for a Barking premises is 240 Strone Road in January 2014. the tribunal held that the price to be paid for the freehold interest was£23,538 of which£13,017 is attributable to the ground floor flat and £10,521 to the first floor flat. This case affected 2 flats. The unexpired lease term was 65.5 years.