Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Barnehurst. Clearly, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Barnehurst have the right to extend the lease for a further 90 years in accordance with legislation. Do give due deliberation before putting off your Barnehurst lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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.
Michael was the the leasehold owner of a conversion apartment in Barnehurst on the market with a lease of a few days over fifty eight years outstanding. Michael on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Autumn we were contacted by Mrs W Mercier , who acquired a one bedroom apartment in Barnehurst in August 1997. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Barnehurst with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £55 collected monthly. The lease expired on 9 September 2081. Having 56 years remaining we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.
An example of a Lease Extension case 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 was in relation to 13 flats. The unexpired residue of the current lease was 76 years.