With a domestic leasehold premises in Barlaston and Tittensor, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Barlaston and Tittensor with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has under eighty years left, under the relevant legislation the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Barlaston and Tittensor with in excess of one hundred years outstanding 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 to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Barlaston and Tittensor can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer 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 in-depth market knowledge procuring Barlaston and Tittensor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy discussions with the landlord of her studio flat in Barlaston and Tittensor, Elizabeth initiated the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction was concluded in July 2015. The freeholder’s charges were negotiated to below five hundred GBP.
In 2014 we were e-mailed by Mr P Sánchez who, having purchased a ground floor apartment in Barlaston and Tittensor in September 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Identical premises in Barlaston and Tittensor with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected yearly. The lease ran out on 9 January 2089. Having 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 plus expenses.
Dr Matthew Morel bought a one bedroom flat in Barlaston and Tittensor in January 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Barlaston and Tittensor with an extended lease were in the region of £189,000. The average amount of ground rent was £55 billed quarterly. The lease concluded on 16 October 2078. Given that there were 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.