As the length of the unexpired term of a Barlborough residential lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 99 years to run then this decrease may be fractional that being said 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 increase sharply the cost. It is the primary logic behind why you should extend the lease sooner than later. Most flat owners in Barlborough will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
Using our service gives you increased control over the value of your Barlborough leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the landlord of her ground floor apartment in Barlborough, Kayleigh initiated the lease extension process as the eighty year deadline was swiftly coming. The transaction was finalised in May 2005. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were phoned by Dr Charlie Williams who, having was assigned a lease of a first floor flat in Barlborough in March 1995. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Barlborough with a long lease were worth £181,600. The average amount of ground rent was £55 invoiced annually. The lease terminated on 23 May 2078. Having 52 years as a residual term we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.
In 2009 we were called by Mr and Mrs. O François who, having was assigned a lease of a purpose-built apartment in Barlborough in June 2005. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable residencies in Barlborough with a long lease were worth £290,000. The average amount of ground rent was £45 billed quarterly. The lease elapsed on 19 August 2098. Given that there were 72 years left we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including fees.