The re-sale value of a leasehold property in Barlestone is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded prior to the eighty year cut off point. Current legislation enables Barlestone qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Barlestone with in excess of one hundred 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Using our service will provide you enhanced control over the value of your Barlestone leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kian was the the leasehold owner of a conversion apartment in Barlestone being sold with a lease of a little over 72 years left. Kian informally spoke with his freeholder 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 new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
In 2011 we were approached by Dr T Martin who, having bought a recently refurbished apartment in Barlestone in February 1998. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar flats in Barlestone with an extended lease were worth £218,000. The mid-range ground rent payable was £45 collected annually. The lease came to a finish on 23 July 2089. Having 63 years unexpired we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus expenses.
Last Christmas we were phoned by Dr J Thompson , who moved into a one bedroom flat in Barlestone in August 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Barlestone with 100 year plus lease were valued around £265,000. The average amount of ground rent was £50 billed every twelve months. The lease expired on 28 October 2100. Given that there were 74 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.