The only way is down when it comes to Barnard Castle lease terms. Barnard Castle leaseholds that have a remaining term less than than eighty years will drop in market price even faster, and the cost of extending your lease will increase.
Leasehold residencies in Barnard Castle with in excess of 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 premises. In such circumstances there is often little upside in buying the freehold 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. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service will provide you increased control over the value of your Barnard Castle leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Mason was the the leasehold owner of a 2 bedroom flat in Barnard Castle being marketed with a lease of just over sixty years unexpired. Mason on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Mason to invoke his statutory right. Mason obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Mrs Molly Lewis took over the lease of a ground floor apartment in Barnard Castle in January 2007. We are asked if we could estimate the premium could be to extend the lease by 90 years. Similar residencies in Barnard Castle with a long lease were valued about £290,000. The average amount of ground rent was £60 collected annually. The lease terminated on 19 September 2106. Considering the 80 years left we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.
Last Spring we were e-mailed by Mrs C Walker , who bought a one bedroom flat in Barnard Castle in February 2006. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Barnard Castle with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated on 15 November 2086. Given that there were 60 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 plus costs.