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Main reasons to commence your Barlborough lease extension

Top reasons for lease extension now:

Increase your lease and increase your Barlborough property value

As the length of the unexpired term of a Barlborough domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Barlborough will qualify for this right; that being said a conveyancing solicitor should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to grant a mortgage on a short lease

Mortgage companies are making their criteria more stringent and many now expect flats to have at least sixty if not seventy years left once the mortgage has expired. Given that a number of flats in Barlborough were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to obtain a mortgage.

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.
Leeds Building Society 85 years remaing from the start of the mortgage.
National Westminster Bank Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.
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.

What makes us experts in Barlborough lease extensions?

The lawyers that we work with procure Barlborough lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Barlborough Lease Extension Example Cases:

Noah, Barlborough, Derbyshire,

Noah owned a 2 bedroom apartment in Barlborough being sold with a lease of just over 72 years outstanding. Noah informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Barlborough case:

Mr C Thomas took over the lease of a first floor apartment in Barlborough in August 2012. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparative flats in Barlborough with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 billed every twelve months. The lease lapsed on 4 January 2091. Having 70 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.

Barlborough case:

Last month we were e-mailed by Dr Natalie Clarke , who moved into a one bedroom apartment in Barlborough in October 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparative premises in Barlborough with a long lease were worth £218,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease ended on 28 February 2080. Given that there were 59 years unexpired we estimated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus legals.