Barkingside leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Barkingside will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Barkingside with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service gives you better control over the value of your Barkingside leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago George, came perilously close to the 80-year mark with the lease on his purpose- built flat in Barkingside. Having bought his flat two decades ago, the unexpired term was of no interest. Luckily, he realised he needed to take steps soon on a lease extension. George arranged for a lease extension just under the wire last May. George and the freeholder via the managing agents ultimately agreed on the final figure of £6,000 . If the lease had fallen below 80 years, the amount would have increased by at least £950.
In 2009 we were called by Mrs Robyn Laurent who, having completed a studio apartment in Barkingside in August 2001. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Similar residencies in Barkingside with a long lease were valued around £246,800. The mid-range amount of ground rent was £60 billed monthly. The lease termination date was on 12 April 2076. Taking into account 50 years as a residual term we estimated the premium to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Barkingside flat 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 term as at the valuation date was 60.29 years.