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 the lease gets more expensive. The majority of owners of residential leasehold property in Barnetby le Wold enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Barnetby le Wold you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Barnetby le Wold lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Archie was the the leasehold owner of a conversion flat in Barnetby le Wold being sold with a lease of a little over 61 years left. Archie informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Archie to exercise his statutory right. Archie procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Dr Ali Allen completed a garden apartment in Barnetby le Wold in May 2012. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Barnetby le Wold with a long lease were in the region of £205,000. The average amount of ground rent was £50 collected every twelve months. The lease came to a finish on 16 May 2105. Considering the 79 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
Last Spring we were contacted by Ms I Wood , who moved into a garden flat in Barnetby le Wold in July 1996. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Barnetby le Wold with an extended lease were worth £275,000. The average amount of ground rent was £65 invoiced annually. The lease elapsed in 2094. Taking into account 68 years left we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.