For anyone whose Barnsley property is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Santander | |
| Skipton Building Society |
Engaging our service gives you enhanced control over the value of your Barnsley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Eliot owned a conversion flat in Barnsley being marketed with a lease of just over 72 years left. Eliot informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Autumn we were contacted by Mr and Mrs. C Mitchell , who was assigned a lease of a basement apartment in Barnsley in July 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Barnsley with a long lease were worth £265,000. The mid-range amount of ground rent was £50 billed monthly. The lease ran out in 2099. Taking into account 73 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2013 we were phoned by Dr Zachary Morris who, having took over the lease of a one bedroom apartment in Barnsley in July 2003. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Barnsley with 100 year plus lease were valued around £264,000. The average ground rent payable was £60 invoiced per annum. The lease terminated on 24 June 2079. Considering the 53 years outstanding we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus legals.