Barlestone leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Barlestone will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and procedures to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Barlestone with over 100 years unexpired 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 property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers 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 conveyancing solicitor we work with provide it.
Following unsuccessful discussions with the landlord of her two bedroom apartment in Barlestone, Sian initiated the lease extension process as the eighty year threshold was rapidly approaching. The legal work was finalised in October 2007. The landlord’s costs were kept to an absolute minimum.
In 2010 we were called by Dr Lucy López who, having acquired a studio apartment in Barlestone in May 2004. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar properties in Barlestone with an extended lease were worth £203,200. The average ground rent payable was £65 invoiced annually. The lease end date was on 23 March 2087. Given that there were 61 years remaining we estimated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including fees.
Mr and Mrs. T Bennett bought a first floor flat in Barlestone in October 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical premises in Barlestone with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 collected annually. The lease expired in 2098. Given that there were 72 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.