Barnsbury leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Barnsbury will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and steps to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold properties in Barnsbury with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Lloyds TSB Scotland | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Barnsbury can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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.
In the wake of 6 months of unsuccessful discussions with the landlord of her first floor apartment in Barnsbury, Jade initiated the lease extension process just as the lease was coming close to the critical eighty-year mark. The legal work was concluded in September 2005. The landlord’s fees were kept to an absolute minimum.
Dr K Gray took over the lease of a studio flat in Barnsbury in November 2004. The question was if we could approximate the premium could be for a 90 year extension to my lease. Identical residencies in Barnsbury with an extended lease were valued about £295,000. The mid-range ground rent payable was £45 billed quarterly. The lease finished on 12 February 2098. Given that there were 74 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
An example of a Lease Extension decision 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 residue of the current lease was 62.79 years.