The market value of a leasehold property in Barnard Castle depends on how many years the lease has left to run. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when a lease still has 82 years to run so that all matters can be addressed prior to the eighty year threshold. Leasehold Reform legislation enables Barnard Castle qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Barnard Castle with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a landlord 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.
Luke was the the leasehold proprietor of a high value flat in Barnard Castle being marketed with a lease of fraction over sixty years left. Luke on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Luke to invoke his statutory right. Luke obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2009 we were contacted by Mr and Mrs. W Parker who, having moved into a first floor flat in Barnard Castle in April 2010. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative residencies in Barnard Castle with a long lease were in the region of £242,600. The average amount of ground rent was £45 collected annually. The lease end date was in 2093. Given that there were 67 years unexpired we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of fees.
In 2011 we were contacted by Dr O Campbell who, having was assigned a lease of a one bedroom flat in Barnard Castle in February 2002. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable homes in Barnard Castle with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease expired on 20 March 2104. Having 78 years remaining we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.