Barkingside leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease dips lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Barkingside will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain cases you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Using our service will provide you better control over the value of your Barkingside leasehold, as your property will be more valuable and marketable in terms of 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.
Subsequent to protracted negotiations with the landlord of her garden apartment in Barkingside, Chloe initiated the lease extension process just as the lease was nearing the critical 80-year deadline. The legal work was concluded in August 2006. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were approached by Mrs Georgina Simon who, having acquired a purpose-built flat in Barkingside in November 1997. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Barkingside with 100 year plus lease were valued around £235,200. The mid-range ground rent payable was £45 collected yearly. The lease elapsed in 2092. Taking into account 66 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.
An example of a Lease Extension case for a Barkingside residence is 104 Coventry Road in July 2014. The Tribunal determined that the lease extension permium should be £22,896.15 This case was in relation to 1 flat. The unexpired lease term was 60.29 years.