It’s an underpublicised truth that a Barnard Castle residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Barnard Castle property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Barnard Castle will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Barnard Castle with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective 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.
Andrew was the the leasehold proprietor of a studio apartment in Barnard Castle on the market with a lease of fraction over 72 years outstanding. Andrew informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last September we were phoned by Ms Ashleigh Phillips , who completed a one bedroom flat in Barnard Castle in June 2010. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar premises in Barnard Castle with a long lease were worth £200,800. The average ground rent payable was £65 invoiced annually. The lease finished in 2086. Having 60 years as a residual term we approximated the premium to the landlord to extend the lease to be between £20,900 and £24,200 plus fees.
Mr and Mrs. Y Khan took over the lease of a basement flat in Barnard Castle in April 1998. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical properties in Barnard Castle with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 collected yearly. The lease end date was in 2097. Given that there were 71 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.