The only way is down when it comes to Barnsbury lease terms. Barnsbury leaseholds that have a residual term less than than 80 years will reduce in market price even faster, and the cost to extend your lease will go up.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with undertake Barnsbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Half a year ago Lewis, started to get near to the 80-year mark with the lease on his garden flat in Barnsbury. Having purchased his flat 19 years previously, the unexpired term was of minimal importance. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. Lewis extended the lease just in the nick of time last January. Lewis and the landlord who owned the flat above subsequently settled on sum of £5,000 . If he not met the deadline, the figure would have become more costly by at least £925.
Last Autumn we were called by Mrs Nicole Rose , who took over the lease of a purpose-built flat in Barnsbury in January 2010. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Barnsbury with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 invoiced annually. The lease expired in 2076. Considering the 51 years outstanding we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Barnsbury flat 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 affected 1 flat. The unexpired lease term was 62.79 years.