As the length of the unexpired term of a Barlborough residential lease decreases so does its value and therefore the value of your property. Where the lease has, beyond one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Barlborough will qualify for this right; however a lawyer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Barlborough leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Riley, came precariously near to the eighty-year threshold with the lease on his studio flat in Barlborough. Having purchased his property two decades ago, the unexpired term was of no interest. Fortunately, he became aware that he needed to take steps soon on a lease extension. Riley was able to extend his lease at the eleventh hour last August. Riley and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If the lease had dropped below eighty years, the figure would have gone up by a minimum £925.
Last January we were e-mailed by Dr Aarav Moore , who moved into a purpose-built flat in Barlborough in July 2004. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative flats in Barlborough with an extended lease were worth £265,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease termination date was on 20 March 2092. Considering the 66 years outstanding we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus costs.
Last month we were called by Ms H Sánchez , who moved into a one bedroom apartment in Barlborough in February 1995. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparable residencies in Barlborough with an extended lease were in the region of £198,800. The average ground rent payable was £55 invoiced every twelve months. The lease terminated on 22 May 2081. Taking into account 55 years left we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including professional charges.