As the the remaining lease term of a Barlborough domestic lease diminished so does its value and therefore the value of your property. If the lease has, beyond 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Barlborough will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Barlborough with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Barlborough can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Barlborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Cameron, started to get near to the 80-year mark with the lease on his one bedroom flat in Barlborough. In buying his property 19 years ago, the lease term was of minimal importance. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Cameron arranged for a lease extension just under the wire last July. Cameron and the freeholder subsequently settled on an amount of £6,000 . If he had missed the deadline, the amount would have become more costly by at least £850.
In 2014 we were called by Mr and Mrs. K Ramírez who, having was assigned a lease of a one bedroom flat in Barlborough in May 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Similar residencies in Barlborough with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 billed monthly. The lease came to a finish in 2093. Considering the 68 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.
Dr Y Moore completed a first floor flat in Barlborough in September 2006. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparative flats in Barlborough with a long lease were valued about £208,600. The average ground rent payable was £60 collected every twelve months. The lease elapsed in 2082. Given that there were 57 years as a residual term we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including expenses.