Unfortunately 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 first few years due to the depreciation being disguised by increases in the Barlestone property prices.Once your lease nears 85ish years, you should start thinking about 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 falls lower than eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Barlestone will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Barlestone with in excess of 100 years remaining on the lease are sometimes regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| TSB | |
| Royal Bank of Scotland |
Engaging our service will provide you better control over the value of your Barlestone leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Logan, came critically near to the 80-year mark with the lease on his one bedroom flat in Barlestone. In buying his property twenty years ago, the unexpired term was of minimal concern. As luck would have it, he noticed he would soon be paying an escalated premium for a lease extension. Logan arranged for a lease extension just ahead of time in March. Logan and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the premium would have gone up by at least £875.
In 2014 we were phoned by Ms Anna Rogers who, having completed a one bedroom flat in Barlestone in January 2003. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Similar flats in Barlestone with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced annually. The lease came to a finish on 26 October 2080. Given that there were 54 years unexpired we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.
In 2012 we were called by Ms Hollie García who, having was assigned a lease of a basement apartment in Barlestone in January 1999. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical residencies in Barlestone with a long lease were in the region of £227,800. The average ground rent payable was £45 collected annually. The lease expired on 26 February 2091. Taking into account 65 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.