It’s an underpublicised certainty that a Barlaston and Tittensor residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Barlaston and Tittensor property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. Most flat owners in Barlaston and Tittensor will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Barlaston and Tittensor with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service gives you enhanced control over the value of your Barlaston and Tittensor leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jude owned a conversion flat in Barlaston and Tittensor being marketed with a lease of fraction over 61 years remaining. Jude informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Spring we were approach by Ms G Mitchell , who bought a ground floor apartment in Barlaston and Tittensor in June 1996. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Identical flats in Barlaston and Tittensor with a long lease were in the region of £243,000. The mid-range ground rent payable was £65 collected quarterly. The lease terminated in 2089. Given that there were 63 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus costs.
In 2011 we were called by Dr M Jackson who, having was assigned a lease of a newly refurbished apartment in Barlaston and Tittensor in September 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Barlaston and Tittensor with a long lease were worth £181,600. The average ground rent payable was £55 billed per annum. The lease ran out in 2078. Taking into account 52 years outstanding we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.