Barking leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Barking will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Barking with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Barking,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barking valuers.
Following protracted correspondence with the landlord of her one bedroom apartment in Barking, Isabelle started the lease extension process just as her lease was nearing the crucial 80-year threshold. The lease extension was concluded in August 2014. The landlord’s costs were restricted to approximately 450 pounds.
In 2010 we were approached by Dr Jacob Khan who, having was assigned a lease of a studio apartment in Barking in April 2011. The question was if we could approximate the premium would be to extend the lease by an additional years. Comparable properties in Barking with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected quarterly. The lease expired on 24 March 2091. Considering the 66 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.
An example of a Lease Extension matter before the tribunal for a Barking residence 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 term as at the valuation date was 65.5 years.