The nearer a residential lease in Barnard Castle nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 99 years to run then this decrease may be fractional 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 primary reason why you should consider extending without delay. Most flat owners in Barnard Castle will qualify for this right; however a conveyancing solicitor can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Barnard Castle with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 experience and the close ties they enjoy with Barnard Castle valuers.
Dylan was the the leasehold proprietor of a high value flat in Barnard Castle being marketed with a lease of just over 61 years unexpired. Dylan on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert legal guidance and secured an acceptable deal informally and sell the property.
Last August we were approach by Mr and Mrs. F Green , who took over the lease of a one bedroom flat in Barnard Castle in September 1998. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Barnard Castle with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease came to a finish on 25 August 2102. Considering the 77 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.
In 2012 we were contacted by Mr and Mrs. H Díaz who, having completed a first floor apartment in Barnard Castle in September 2008. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical properties in Barnard Castle with an extended lease were worth £183,600. The mid-range ground rent payable was £65 billed annually. The lease ran out on 15 June 2082. Taking into account 57 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of fees.