As the the remaining lease term of a Barnard Castle domestic lease diminished so does its value and therefore the value of your property. Where the lease has, beyond one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Most flat owners in Barnard Castle will qualify for this right; that being said a conveyancer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Engaging our service gives you increased control over the value of your Barnard Castle leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Adam, started to get near to the 80-year mark with the lease on his basement flat in Barnard Castle. Having purchased his flat two decades ago, the length of the lease was of minimal bearing. Luckily, he noticed he needed to take steps soon on a lease extension. Adam extended the lease just under the wire in January. Adam and the freeholder subsequently agreed on an amount of £5,500 . If the lease had slid lower than eighty years, the figure would have become more costly by at least £925.
Mr Y Brooks took over the lease of a first floor flat in Barnard Castle in October 2009. The question was if we could estimate the premium could be to prolong the lease by an additional years. Comparable properties in Barnard Castle with an extended lease were valued around £254,200. The average amount of ground rent was £60 collected every twelve months. The lease terminated in 2077. Having 51 years outstanding we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including fees.
Mrs T Carter completed a first floor flat in Barnard Castle in April 1999. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical flats in Barnard Castle with an extended lease were valued around £210,600. The mid-range amount of ground rent was £45 billed annually. The lease lapsed on 20 September 2088. Given that there were 62 years left we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including professional charges.