Barnsley residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Barnsley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barnsley valuers.
Two years ago Milo, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Barnsley. In buying his property two decades ago, the lease term was of little relevance. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Milo was able to extend his lease just ahead of time in September. Milo and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If he not met the deadline, the premium would have increased by at least £1,075.
In 2012 we were e-mailed by Mr and Mrs. N Gunderson who, having owned a purpose-built flat in Barnsley in September 1995. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Barnsley with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 collected per annum. The lease termination date was in 2089. Taking into account 64 years unexpired we estimated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of expenses.
Last Christmas we were e-mailed by Mr and Mrs. L Harris , who was assigned a lease of a studio apartment in Barnsley in August 2007. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Barnsley with an extended lease were in the region of £270,000. The average ground rent payable was £55 invoiced per annum. The lease concluded on 16 July 2100. Taking into account 75 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.