The value of Barnsbury leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Barnsbury 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 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.
Twenty four months ago Finley, started to get near to the eighty-year mark with the lease on his ground floor flat in Barnsbury. Having purchased his flat two decades ago, the lease term was of minimal concern. by good luck, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Finley was able to extend his lease just ahead of time in July. Finley and the landlord in the end settled on the final figure of £5,000 . If the lease had gone below 80 years, the sum would have become more exhorbitant by a minimum £1,125.
Last Christmas we were approach by Ms T Petit , who purchased a recently refurbished flat in Barnsbury in September 2012. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Barnsbury with a long lease were valued around £171,800. The average amount of ground rent was £55 collected quarterly. The lease elapsed in 2075. Considering the 50 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus legals.
An example of a Lease Extension decision for a Barnsbury property 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.