For anyone whose Barlaston property is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Barlaston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barlaston valuers.
In the wake of 6 months of protracted negotiations with the freeholder of her studio apartment in Barlaston, Alexandra started the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension was concluded in May 2007. The freeholder’s charges were kept to an absolute minimum.
Mrs Alice Wright completed a recently refurbished apartment in Barlaston in May 2010. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar homes in Barlaston with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 collected annually. The lease ran out in 2099. Given that there were 74 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
In 2010 we were e-mailed by Dr Austin Hernández who, having purchased a newly refurbished flat in Barlaston in March 2001. The question was if we could estimate the price would be to extend the lease by ninety years. Identical flats in Barlaston with 100 year plus lease were valued around £243,000. The mid-range ground rent payable was £65 collected yearly. The lease ended in 2088. Given that there were 63 years left we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including expenses.