Barlaston 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 permits qualifying Barlaston residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Barlaston you should investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Barlaston leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Barlaston can be a difficult process. We recommend you secure professional help from a lawyer 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 dealing with Barlaston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo owned a high value apartment in Barlaston being marketed with a lease of a few days over fifty eight years outstanding. Milo informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Milo to exercise his statutory right. Milo obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
Mr and Mrs. R Patel moved into a basement flat in Barlaston in May 1996. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Barlaston with an extended lease were in the region of £181,600. The average amount of ground rent was £55 collected per annum. The lease ran out on 11 January 2078. Having 52 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including professional charges.
Last Autumn we were called by Mr H Vincent , who moved into a one bedroom flat in Barlaston in September 2000. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparative residencies in Barlaston with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease concluded on 2 July 2098. Given that there were 72 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including costs.