Unfortunately that a Barlborough residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Barlborough property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. Most flat owners in Barlborough will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Barlborough with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Barlborough,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barlborough valuers.
Dylan was the the leasehold owner of a 2 bedroom apartment in Barlborough being sold with a lease of a little over 72 years outstanding. Dylan informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2011 we were e-mailed by Mr and Mrs. F Williams who, having purchased a one bedroom flat in Barlborough in February 1997. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Similar premises in Barlborough with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £45 collected annually. The lease ran out on 20 June 2099. Taking into account 73 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Dr L Brooks acquired a studio flat in Barlborough in July 2000. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Barlborough with a long lease were in the region of £240,600. The mid-range amount of ground rent was £65 collected yearly. The lease lapsed on 14 May 2088. Considering the 62 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including professional charges.