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. It is the case that most Barnoldswick tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Barnoldswick you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 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
Leasehold properties in Barnoldswick with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Barnoldswick,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barnoldswick valuers.
Off the back of lengthy discussions with the freeholder of her studio apartment in Barnoldswick, Eleanor initiated the lease extension process as the 80 year deadline was fast advancing. The legal work completed in September 2010. The freeholder’s fees were kept to an absolute minimum.
Dr B Mercier completed a garden apartment in Barnoldswick in May 2012. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar properties in Barnoldswick with an extended lease were valued about £184,000. The average amount of ground rent was £55 collected every twelve months. The lease concluded on 7 May 2078. Having 53 years outstanding we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.
Mrs W Patel completed a first floor flat in Barnoldswick in January 1998. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Barnoldswick with a long lease were valued around £290,000. The mid-range amount of ground rent was £45 billed yearly. The lease elapsed in 2098. Taking into account 73 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.