There is no doubt about it a leasehold flat or house in Barnard Castle is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Barnard Castle will qualify for this right; nevertheless a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Barnard Castle,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 Barnard Castle valuers.
Last year Joseph, started to get close to the 80-year mark with the lease on his basement flat in Barnard Castle. In buying his property 18 years ago, the length of the lease was of minimal interest. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. Joseph was able to extend his lease just under the wire in May. Joseph and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £1,150.
Dr U Adams completed a recently refurbished apartment in Barnard Castle in October 1996. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical residencies in Barnard Castle with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 collected annually. The lease elapsed on 21 March 2102. Having 76 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Last Spring we were contacted by Mr William Murphy , who acquired a studio flat in Barnard Castle in January 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Barnard Castle with an extended lease were valued around £176,200. The average ground rent payable was £65 collected every twelve months. The lease ended on 4 June 2082. Considering the 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 not including legals.