For those whose Barnoldswick home is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
Leasehold properties in Barnoldswick with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 experience and the close ties they enjoy with Barnoldswick valuers.
After lengthy discussions with the freeholder of her leasehold apartment in Barnoldswick, Ellie initiated the lease extension process as the eighty year mark was rapidly approaching. The legal work was finalised in January 2007. The freeholder’s charges were restricted to slightly above 600 pounds.
Dr Zachary Roux completed a one bedroom apartment in Barnoldswick in May 2005. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Similar properties in Barnoldswick with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease concluded on 13 March 2085. Having 60 years outstanding we estimated the premium to the landlord for the lease extension to be within £25,700 and £29,600 exclusive of legals.
In 2013 we were approached by Mr and Mrs. V Morgan who, having moved into a first floor apartment in Barnoldswick in April 2002. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparative flats in Barnoldswick with an extended lease were worth £210,000. The average ground rent payable was £50 collected yearly. The lease expired in 2105. Given that there were 80 years remaining we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.