The re-sale value of a leasehold property in Barlestone is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised ahead of the 80 year threshold. Leasehold Reform legislation enables Barlestone qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Barlestone,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barlestone valuers.
In the wake of 6 months of unsuccessful negotiations with the landlord of her garden flat in Barlestone, Kelsey commenced the lease extension process as the eighty year deadline was swiftly approaching. The legal work completed in September 2014. The freeholder’s fees were kept to an absolute minimum.
Mrs Ashleigh Robinson moved into a purpose-built flat in Barlestone in February 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in Barlestone with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease ended in 2097. Given that there were 71 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.
In 2013 we were contacted by Mr Teddy Johnson who, having acquired a one bedroom flat in Barlestone in July 2009. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Barlestone with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 billed quarterly. The lease expired on 4 June 2077. Having 51 years left we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus professional charges.