With a domestic leasehold premises in Barnard Castle, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Anyone in Barnard Castle with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has fewer than eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
Lease extensions in Barnard Castle can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Barnard Castle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the landlord of her two bedroom flat in Barnard Castle, Jade started the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The lease extension was finalised in September 2010. The landlord’s costs were kept to an absolute minimum.
Last February we were contacted by Mr and Mrs. L Mason , who bought a recently refurbished flat in Barnard Castle in September 2001. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Similar premises in Barnard Castle with an extended lease were worth £264,000. The mid-range ground rent payable was £60 collected quarterly. The lease expired on 4 March 2079. Given that there were 53 years unexpired we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including fees.
In 2012 we were e-mailed by Mr and Mrs. V Garcia who, having bought a one bedroom flat in Barnard Castle in January 2012. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Barnard Castle with 100 year plus lease were valued around £225,400. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out in 2090. Considering the 64 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including costs.