It’s an underpublicised certainty that a Barlestone residential lease is a wasting 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 Barlestone property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Barlestone will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Barlestone with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
The conveyancing solicitors that we work with procure Barlestone lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 6 months of protracted negotiations with the landlord of her first floor apartment in Barlestone, Jasmine commenced the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work completed in March 2005. The landlord’s fees were restricted to below six hundred pounds.
Dr N Rivera owned a one bedroom apartment in Barlestone in April 1998. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative residencies in Barlestone with a long lease were worth £256,600. The average amount of ground rent was £60 billed annually. The lease terminated in 2077. Given that there were 52 years unexpired we calculated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 plus legals.
Dr Jude Lee bought a one bedroom flat in Barlestone in August 2007. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Barlestone with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish on 5 May 2088. Considering the 63 years left we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.