The value of Barlborough leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is less than eighty years
Leasehold properties in Barlborough with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancing solicitors 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 conveyancer we work with provide it.
Oliver was the the leasehold proprietor of a studio apartment in Barlborough being sold with a lease of a little over 72 years unexpired. Oliver on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Oliver to invoke his statutory right. Oliver procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. K Bell owned a one bedroom flat in Barlborough in October 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparative flats in Barlborough with 100 year plus lease were valued about £174,200. The average amount of ground rent was £55 collected quarterly. The lease ended in 2077. Given that there were 51 years left we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.
Last Christmas we were e-mailed by Dr R Harris , who took over the lease of a one bedroom flat in Barlborough in February 1999. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Barlborough with an extended lease were worth £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ran out on 11 August 2097. Taking into account 71 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.