Barnard Castle leases on domestic deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Barnard Castle will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and procedures to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Engaging our service will provide you better 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 conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Eli was the the leasehold proprietor of a conversion apartment in Barnard Castle on the market with a lease of a few days over 61 years remaining. Eli informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eli to exercise his statutory right. Eli obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Christmas we were called by Ms E Flores , who was assigned a lease of a first floor apartment in Barnard Castle in March 1995. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable residencies in Barnard Castle with an extended lease were in the region of £280,000. The average ground rent payable was £55 billed per annum. The lease ended on 11 June 2104. Taking into account 78 years left we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Last month we were e-mailed by Mr and Mrs. B Gunderson , who acquired a studio apartment in Barnard Castle in January 2011. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical homes in Barnard Castle with a long lease were valued around £191,000. The average amount of ground rent was £65 billed per annum. The lease lapsed on 10 May 2084. Taking into account 58 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of professional charges.