When it comes to long leasehold premises in Barnard Castle, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Anyone in Barnard Castle with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under 80 years remaining, under the current legislation the freeholder can calculate and charge a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Barnard Castle lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Following unsuccessful correspondence with the freeholder of her one bedroom apartment in Barnard Castle, Kelsey started the lease extension process as the 80 year threshold was quickly approaching. The lease extension was finalised in June 2008. The freeholder’s fees were kept to an absolute minimum.
Last year we were approach by Dr E Carter , who was assigned a lease of a one bedroom apartment in Barnard Castle in February 2007. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Barnard Castle with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed quarterly. The lease elapsed in 2101. Having 76 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
In 2009 we were e-mailed by Mr and Mrs. M Ricardo who, having moved into a basement flat in Barnard Castle in March 1997. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative residencies in Barnard Castle with 100 year plus lease were valued about £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease ran out on 25 October 2081. Given that there were 56 years as a residual term we approximated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including costs.