Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Barlaston. Inevitably, the length of lease left reduces over time. This is often overlooked and only becomes a problem when the property has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Barlaston have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Do give careful attention before delaying your Barlaston lease extension. Holding off that expense now only increases the price you will ultimately incur to extend your lease
Leasehold properties in Barlaston with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | 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. |
Regardless of whether you are a tenant or a freeholder in Barlaston,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barlaston valuers.
Twenty four months ago Jacob, came precariously near to the eighty-year mark with the lease on his basement flat in Barlaston. Having purchased his property 19 years previously, the length of the lease was of minimal importance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Jacob extended the lease at the eleventh hour in July. Jacob and the landlord eventually settled on the final figure of £5,000 . If the lease had slid to less than 80 years, the price would have gone up by a minimum £1,100.
In 2009 we were e-mailed by Mr L Bernard who, having acquired a first floor apartment in Barlaston in August 2002. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Barlaston with a long lease were in the region of £300,000. The average amount of ground rent was £50 billed quarterly. The lease lapsed on 7 November 2102. Considering the 76 years outstanding we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
In 2010 we were contacted by Mr N Hill who, having took over the lease of a one bedroom apartment in Barlaston in September 1996. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable homes in Barlaston with an extended lease were worth £257,800. The mid-range ground rent payable was £65 invoiced monthly. The lease ran out in 2091. Given that there were 65 years unexpired we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus expenses.