Barnoldswick 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. Most owners of residential leasehold property in Barnoldswick enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Barnoldswick you really ought to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Barnoldswick can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
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 Barnoldswick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Samuel, started to get near to the eighty-year mark with the lease on his studio apartment in Barnoldswick. In buying his home 19 years previously, the lease term was of no interest. by good luck, he recognised he needed to take action soon on a lease extension. Samuel was able to extend his lease just ahead of time last March. Samuel and the freeholder via the managing agents subsequently settled on a premium of £5,000 . If he not met the deadline, the price would have become more costly by a minimum £1,000.
Mrs Charlotte Phillips moved into a first floor flat in Barnoldswick in April 1997. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparative homes in Barnoldswick with an extended lease were worth £205,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended on 4 April 2104. Having 79 years remaining we approximated the premium to the landlord for the lease extension to be between £7,600 and £8,800 exclusive of costs.
In 2012 we were e-mailed by Mr and Mrs. Y Roberts who, having took over the lease of a recently refurbished apartment in Barnoldswick in October 2004. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar homes in Barnoldswick with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £65 collected quarterly. The lease came to a finish on 21 February 2093. Having 68 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.