Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Barlborough. Clearly, the term of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Barlborough have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Barlborough lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold residencies in Barlborough with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Barlborough,the lease extension solicitors that we work with will always be prepared 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.
Harvey owned a studio apartment in Barlborough on the market with a lease of a little over sixty years left. Harvey on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last Christmas we were approach by Mr K Patel , who took over the lease of a first floor flat in Barlborough in April 1997. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable premises in Barlborough with an extended lease were valued about £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease ended in 2104. Given that there were 78 years remaining we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 plus legals.
In 2013 we were approached by Mr and Mrs. R Rodríguez who, having purchased a ground floor flat in Barlborough in October 2011. The question was if we could estimate the price would be to extend the lease by a further 90 years. Comparative properties in Barlborough with a long lease were valued about £267,600. The average ground rent payable was £65 invoiced quarterly. The lease concluded on 26 July 2093. Taking into account 67 years remaining we approximated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of costs.