There is no doubt about it a leasehold flat or house in Barnes is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 99 years to run then this decrease may be fractional however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Barnes will meet the qualifying criteria; that being said a lawyer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Barnes with more than one hundred years unexpired on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Barnes,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barnes valuers.
After unsuccessful discussions with the landlord of her basement flat in Barnes, Jessica initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The transaction completed in November 2015. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were contacted by Mr Toby Gómez who, having owned a newly refurbished apartment in Barnes in May 2008. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable premises in Barnes with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease terminated in 2096. Taking into account 70 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Barnes residence 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 unexpired lease term was 156.6 years and 66.6 years.