There is no doubt about it a leasehold flat or house in Barnsley is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Barnsley will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Barnsley with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Retaining our service gives you better control over the value of your Barnsley leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Reuben owned a high value flat in Barnsley being sold with a lease of fraction over fifty eight years remaining. Reuben on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2014 we were phoned by Dr F Peterson who, having acquired a one bedroom apartment in Barnsley in February 1999. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparative flats in Barnsley with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 collected annually. The lease finished on 9 August 2104. Taking into account 78 years as a residual term we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.
Last year we were approach by Mrs M Mitchell , who was assigned a lease of a ground floor flat in Barnsley in August 1997. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable homes in Barnsley with a long lease were in the region of £191,000. The average amount of ground rent was £65 collected yearly. The lease expiry date was in 2084. Having 58 years left we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of legals.