Why you should start your Barnsley lease extension

Main reasons to commence your Barnsley lease extension today:

A Barnsley leasehold property depreciates with the years remaining on the lease.

There is no doubt about it a leasehold flat or house in Barnsley is a wasting asset as a result of the shortening lease. Where the lease has, more than 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Barnsley will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold properties in Barnsley with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to loan monies with a short lease

Most high street banks are making their criteria more stringent and many now require flats to have a minimum of 60 if not 70 years left once the mortgage has expired. Considering a number of flats in Barnsley were created in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to get a mortgage.

Get in touch with one of our Barnsley lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Barnsley,the lease extension experts 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.

Barnsley Lease Extension Example Cases:

Harrison, Barnsley, South Yorkshire,

Harrison was the the leasehold owner of a 2 bedroom apartment in Barnsley on the market with a lease of a few days over 72 years remaining. Harrison on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.

Barnsley case:

In 2010 we were called by Mr Milo Adams who, having acquired a purpose-built apartment in Barnsley in August 1997. The question was if we could estimate the premium would be for a ninety year lease extension. Comparable properties in Barnsley with 100 year plus lease were valued about £166,400. The average ground rent payable was £60 billed quarterly. The lease terminated in 2080. Considering the 54 years left we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus costs.

Barnsley case:

Last Christmas we were called by Dr J Ricardo , who bought a studio apartment in Barnsley in August 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in Barnsley with an extended lease were in the region of £227,800. The mid-range amount of ground rent was £45 collected yearly. The lease expired on 28 April 2091. Taking into account 65 years left we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.