The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Barnes may extend the lease for an additional 90 years under legislation. Please give careful consideration before delaying your Barnes lease extension. Shelving the costs now simply escalates the price you will eventually be required to pay to extend the lease.
Leasehold residencies in Barnes with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her ground floor flat in Barnes, Ashleigh started the lease extension process as the 80 year mark was rapidly nearing. The transaction was finalised in September 2014. The landlord’s charges were restricted to approximately four hundred GBP.
Last year we were e-mailed by Dr J Howard , who purchased a purpose-built flat in Barnes in June 2003. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar homes in Barnes with a long lease were valued about £218,000. The mid-range amount of ground rent was £45 collected annually. The lease terminated on 4 November 2088. Given that there were 63 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus expenses.
An example of a Freehold Enfranchisement decision 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.