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 your lease becomes more expensive. It is the case that most Barlaston tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Barlaston you must investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Barlaston with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Barlaston can be a difficult process. We recommend you procure guidance 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 a wealth of experience procuring Barlaston 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 Finley, came critically close to the 80-year threshold with the lease on his garden flat in Barlaston. In buying his home 18 years previously, the unexpired term was of minimal bearing. Luckily, he became aware that he needed to take action soon on Extending the lease. Finley was able to extend his lease just ahead of time last April. Finley and the landlord subsequently settled on sum of £5,500 . If he failed to meet the deadline, the figure would have increased by a minimum £850.
Ms Jennifer Bailey bought a recently refurbished flat in Barlaston in July 2004. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical flats in Barlaston with 100 year plus lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out on 15 April 2080. Having 55 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of expenses.
Last month we were approach by Mr and Mrs. Y Bell , who completed a garden apartment in Barlaston in June 1999. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar premises in Barlaston with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded on 5 August 2100. Considering the 75 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.