Barnetby le Wold leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Barnetby le Wold tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Barnetby le Wold you must see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Barnetby le Wold flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Barnetby le Wold with over one hundred years outstanding 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 reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Lease extensions in Barnetby le Wold can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Barnetby le Wold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Edward owned a 2 bedroom flat in Barnetby le Wold on the market with a lease of fraction over 59 years unexpired. Edward informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mrs Emma White bought a purpose-built flat in Barnetby le Wold in September 1998. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Barnetby le Wold with a long lease were worth £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease elapsed on 20 September 2100. Having 74 years remaining we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Last Spring we were e-mailed by Mr and Mrs. U Harris , who was assigned a lease of a garden apartment in Barnetby le Wold in October 2002. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Barnetby le Wold with an extended lease were valued about £243,000. The average amount of ground rent was £65 billed annually. The lease termination date was in 2089. Considering the 63 years remaining we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus legals.