Barking Lease Extension - Free Consultation

Before you progress with your lease extension in Barking
Get a quote from one of our lease extension experts with over 20 years experience.

Let them guide you for FREE on the various options available to you.

It may end up saving you thousands.

Main reasons to commence your Barking lease extension


Top reasons for lease extension now:

A Barking lease depreciates with the years remaining on the lease.

Barking leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Barking will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some cases you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Barking with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not lend on a short lease

Most banks have tightened lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly under 75 years as they are deemed to be unacceptable security.

Lender Requirement
Accord Mortgages 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Halifax Minimum 70 years from the date of the mortgage.

What makes us experts in Barking lease extensions?

Using our service gives you increased control over the value of your Barking 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.

Barking Lease Extension Case Summaries:

Luke, Barking, Essex

During the course of the last few months Luke, came perilously close to the 80-year threshold with the lease on his studio flat in Barking. In buying his flat 18 years previously, the unexpired term was of minimal relevance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Luke extended the lease just under the wire last May. Luke and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If he failed to meet the deadline, the amount would have gone up by at least £1,000.

Barking case:

In 2010 we were contacted by Mr and Mrs. O Girard who, having took over the lease of a one bedroom flat in Barking in August 2010. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar flats in Barking with a long lease were worth £176,200. The average amount of ground rent was £65 collected every twelve months. The lease expired on 24 July 2081. Having 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including expenses.

Decision in Newham

An example of a Lease Extension matter before the tribunal for a Barking property 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 was in relation to 2 flats. The number of years remaining on the existing lease(s) was 65.5 years.