There is no doubt about it a leasehold flat or house in Barnehurst is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Barnehurst will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm whether you qualify for a lease extension. 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 conventional wisdom 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 residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Engaging our service gives you increased control over the value of your Barnehurst leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy discussions with the landlord of her one bedroom apartment in Barnehurst, Victoria started the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in April 2007. The landlord’s costs were kept to an absolute minimum.
Last year we were contacted by Mrs Ellen Anderson , who purchased a studio flat in Barnehurst in January 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Barnehurst with a long lease were valued around £275,000. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish on 19 February 2094. Taking into account 69 years outstanding we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Barnehurst property is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case related to 13 flats. The unexpired term was 76 years.