Barkingside leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Barkingside residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Barkingside you must check if your lease has between seventy and 90 years left. There are good reasons why a Barkingside flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
Leasehold premises in Barkingside with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a landlord in Barkingside,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barkingside valuers.
Hunter owned a high value flat in Barkingside being marketed with a lease of a few days over 72 years remaining. Hunter informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hunter to invoke his statutory right. Hunter procured expert advice and secured an acceptable deal informally and readily saleable.
In 2009 we were e-mailed by Dr F Torres who, having was assigned a lease of a purpose-built apartment in Barkingside in April 1997. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar homes in Barkingside with 100 year plus lease were in the region of £245,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed in 2093. Having 68 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.
An example of a Lease Extension decision 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 related to 1 flat. The remaining number of years on the lease was 60.29 years.