With a long leasehold premises in Barnetby le Wold, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years left. Leasehold owners in Barnetby le Wold with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. Once a lease has fewer than 80 years remaining, under the relevant Act the freeholder is entitled to calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Barnetby le Wold with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Barnetby le Wold leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
David owned a 2 bedroom apartment in Barnetby le Wold being marketed with a lease of fraction over sixty years unexpired. David on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were David to invoke his statutory right. David obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2014 we were contacted by Dr Emily Murphy who, having bought a newly refurbished flat in Barnetby le Wold in October 1995. We are asked if we could approximate the price could be to extend the lease by 90 years. Similar premises in Barnetby le Wold with 100 year plus lease were valued around £171,800. The mid-range amount of ground rent was £55 billed monthly. The lease finished on 21 January 2076. Taking into account 50 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus expenses.
In 2011 we were e-mailed by Dr N Kelly who, having was assigned a lease of a studio flat in Barnetby le Wold in April 2006. The question was if we could estimate the premium could be to prolong the lease by an additional years. Similar flats in Barnetby le Wold with a long lease were in the region of £280,000. The average ground rent payable was £45 collected monthly. The lease expired on 18 March 2096. Given that there were 70 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.