As the the remaining lease term of a Barnard Castle residential lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Barnard Castle will qualify for this right; that being said a conveyancing solicitor can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Barnard Castle with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Barnard Castle,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barnard Castle valuers.
Off the back of protracted negotiations with the freeholder of her basement apartment in Barnard Castle, Ella started the lease extension process just as her lease was approaching the all-important 80-year deadline. The legal work was concluded in November 2008. The freeholder’s charges were restricted to below 550 pounds.
Mr and Mrs. O Vincent completed a purpose-built flat in Barnard Castle in March 2000. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable premises in Barnard Castle with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 billed annually. The lease expired in 2098. Given that there were 72 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
In 2014 we were approached by Dr Emily Bailey who, having acquired a purpose-built apartment in Barnard Castle in October 1996. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Identical homes in Barnard Castle with an extended lease were valued about £261,600. The mid-range ground rent payable was £60 collected per annum. The lease ended on 11 October 2078. Taking into account 52 years as a residual term we estimated the premium to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of legals.