The re-sale value of a leasehold property in Barnes depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that all matters can be finalised prior to the 80 year threshold. Leasehold Reform legislation enables Barnes qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Barnes with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Santander | |
| Skipton Building Society |
Retaining our service gives you increased control over the value of your Barnes leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Isaac owned a 2 bedroom apartment in Barnes being marketed with a lease of a little over 72 years outstanding. Isaac informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Isaac to exercise his statutory right. Isaac procured expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
In 2009 we were contacted by Mr and Mrs. D Roberts who, having was assigned a lease of a studio flat in Barnes in May 2007. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar properties in Barnes with 100 year plus lease were worth £225,400. The average ground rent payable was £45 invoiced every twelve months. The lease terminated on 11 November 2090. Taking into account 64 years remaining we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Barnes property is 25 Petley Road in February 2010. The Tribunal determined that the price payable for the freehold of the subject premises should be £18,760. This case affected 2 flats. The number of years remaining on the existing lease(s) was 156.6 years and 66.6 years.