Barnoldswick leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Barnoldswick tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Barnoldswick you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| 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 will provide you better control over the value of your Barnoldswick leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
David owned a 2 bedroom apartment in Barnoldswick being sold with a lease of just over 72 years remaining. David on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were David to invoke his statutory right. David obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2012 we were approached by Ms T Johnson who, having was assigned a lease of a first floor apartment in Barnoldswick in February 2008. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Identical premises in Barnoldswick with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 billed yearly. The lease ended on 25 March 2103. Taking into account 77 years unexpired we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
Last February we were phoned by Ms W Jackson , who completed a ground floor flat in Barnoldswick in May 2011. We are asked if we could approximate the price could be for a 90 year lease extension. Similar premises in Barnoldswick with 100 year plus lease were valued around £260,200. The average amount of ground rent was £65 collected yearly. The lease elapsed on 24 November 2092. Given that there were 66 years left we calculated the premium to the landlord to extend the lease to be between £16,200 and £18,600 not including costs.