With a domestic leasehold property in Barlestone, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years remaining. Leasehold owners in Barlestone with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. Once a lease has fewer than eighty years remaining, under the relevant Act the landlord can calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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 |
Irrespective of whether you are a tenant or a landlord in Barlestone,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barlestone valuers.
Hunter owned a studio flat in Barlestone being marketed with a lease of a few days over sixty years outstanding. Hunter on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Hunter to invoke his statutory right. Hunter obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Ms Rebecca David bought a purpose-built flat in Barlestone in May 1999. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Barlestone with a long lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed on 24 April 2088. Given that there were 62 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus fees.
In 2013 we were phoned by Mrs B Adams who, having completed a recently refurbished apartment in Barlestone in February 2010. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical premises in Barlestone with 100 year plus lease were worth £265,000. The average ground rent payable was £50 invoiced quarterly. The lease ended on 26 August 2099. Taking into account 73 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.