On the balance of probabilities if you own a flat in Barlborough you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same 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 |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Barlborough,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barlborough valuers.
Jude owned a conversion flat in Barlborough on the market with a lease of a little over 72 years left. Jude on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jude to exercise his statutory right. Jude obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr I Lefèvre moved into a studio flat in Barlborough in July 1999. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparable premises in Barlborough with an extended lease were worth £205,000. The average ground rent payable was £50 invoiced every twelve months. The lease concluded in 2104. Given that there were 79 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
In 2009 we were phoned by Mrs I Moreau who, having bought a garden flat in Barlborough in July 1997. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Similar homes in Barlborough with a long lease were worth £275,000. The average amount of ground rent was £65 invoiced annually. The lease came to a finish in 2093. Having 68 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.