For those whose Barkingside property is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold residencies in Barkingside with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
|Barclays plc||Mortgage term plus 25 years|
|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.|
|Skipton Building Society|| 85 years from the date of completion of the mortgage |
|TSB||Mortgage term plus 30 years subject to an overall minimum term of 70 years|
Lease extensions in Barkingside can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 dealing with Barkingside lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Jason, came seriously near to the 80-year threshold with the lease on his first floor flat in Barkingside. In buying his flat twenty years previously, the unexpired term was of no importance. Luckily, he recognised he needed to take action soon on Extending the lease. Jason arranged for a lease extension at the eleventh hour in June. Jason and the freeholder via the management company subsequently settled on the final figure of £6,000 . If the lease had dropped to less than eighty years, the figure would have escalated by a minimum £1,125.
Dr Luke Clark was assigned a lease of a one bedroom flat in Barkingside in June 2011. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparable residencies in Barkingside with 100 year plus lease were worth £264,000. The average ground rent payable was £60 invoiced per annum. The lease ran out on 14 October 2072. Taking into account 53 years unexpired we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including costs.
An example of a Lease Extension decision for a Barkingside premises 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 number of years remaining on the existing lease(s) was 60.29 years.