The market value of Barnehurst leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Barnehurst can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Barnehurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the freeholder of her one bedroom flat in Barnehurst, Shannon commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction was concluded in March 2012. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were approached by Mr and Mrs. V Ward who, having acquired a ground floor flat in Barnehurst in February 2007. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparative flats in Barnehurst with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 collected annually. The lease end date was on 10 November 2098. Having 73 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Barnehurst premises 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 was in relation to 13 flats. The unexpired term was 76 years.