Barkingside leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Barkingside enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Barkingside you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Barkingside can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Last year Ibrahim, came precariously close to the 80-year threshold with the lease on his two bedroom apartment in Barkingside. In buying his flat two decades ago, the unexpired term was of minimal importance. As luck would have it, he noticed he would imminently be paying an escalated premium for Extending the lease. Ibrahim was able to extend his lease just in the nick of time last June. Ibrahim and the freeholder via the managing agents eventually settled on a premium of £5,000 . If the lease had gone below eighty years, the figure would have increased by a minimum £925.
Last Christmas we were approach by Mr Ibrahim Baker , who bought a studio flat in Barkingside in November 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Barkingside with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease finished in 2082. Having 56 years left we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including 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 related to 1 flat. The unexpired lease term was 60.29 years.