Unfortunately that a Barnard Castle residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Barnard Castle property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining drops under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Barnard Castle will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Barnard Castle with more than 100 years remaining 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 situations there is often little to be gained by 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 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; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Barnard Castle,the lease extension solicitors that we work with will always be prepared 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.
Half a year ago Aiden, came very near to the eighty-year threshold with the lease on his two bedroom apartment in Barnard Castle. Having bought his property two decades ago, the length of the lease was of little significance. Luckily, he noticed he needed to take action soon on Extending the lease. Aiden was able to extend his lease just under the wire in March. Aiden and the freeholder via the management company subsequently agreed on an amount of £5,500 . If the lease had descended lower than 80 years, the figure would have become more exhorbitant by at least £975.
Mr W Sánchez bought a garden apartment in Barnard Castle in April 2011. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical flats in Barnard Castle with a long lease were worth £218,000. The average amount of ground rent was £45 billed per annum. The lease ran out in 2088. Taking into account 63 years remaining we estimated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of expenses.
Last month we were contacted by Mrs Aimee Fournier , who acquired a one bedroom flat in Barnard Castle in April 2011. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Similar properties in Barnard Castle with a long lease were worth £265,000. The mid-range ground rent payable was £50 collected yearly. The lease came to a finish in 2098. Taking into account 73 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.