When it comes to long leasehold property in Barkingside, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Residents in Barkingside with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has fewer than eighty years remaining, under the relevant Act the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Barkingside with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Barkingside can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Barkingside lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her basement apartment in Barkingside, Nicole commenced the lease extension process just as the lease was coming close to the critical eighty-year threshold. The lease extension was finalised in September 2012. The landlord’s fees were kept to an absolute minimum.
Mr S King was assigned a lease of a one bedroom apartment in Barkingside in November 2003. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar premises in Barkingside with a long lease were worth £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease concluded in 2085. Given that there were 60 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Barkingside property is 104 Coventry Road in July 2014. The Tribunal determined that the lease extension permium should be £22,896.15 This case affected 1 flat. The unexpired residue of the current lease was 60.29 years.