As the length of the unexpired term of a Barnsbury residential lease decreases so does its value and therefore the value of your property. Where the lease has, over one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Barnsbury will meet the qualifying criteria; that being said a lawyer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Barnsbury can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Barnsbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the freeholder of her first floor apartment in Barnsbury, Harriet commenced the lease extension process as the 80 year deadline was swiftly advancing. The lease extension completed in July 2012. The freeholder’s costs were negotiated to under 650 pounds.
Last Summer we were approach by Mr Isaac Turner , who acquired a basement apartment in Barnsbury in July 2004. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable premises in Barnsbury with 100 year plus lease were worth £243,000. The average amount of ground rent was £65 invoiced annually. The lease lapsed in 2088. Considering the 63 years as a residual term we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Barnsbury residence is Flat 120, Clare Court Judd Street in August 2013. the Tribunal held that the premium to be paid for the extension of the lease should be £64,650 This case was in relation to 1 flat. The unexpired term as at the valuation date was 62.79 years.