Barnstaple Lease Extension - Free Consultation

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Main reasons to start your Barnstaple lease extension

Main reasons to commence your Barnstaple lease extension today:

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

As the the remaining lease term of a Barnstaple residential lease lessens so does its value and therefore the value of your property. If the residual term has, over 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Barnstaple will qualify for this right; however a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

Barnstaple property with a lease extension has roughly the same value as a freehold

Leasehold properties in Barnstaple with in excess of 100 years outstanding 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 upside in purchasing the freehold unless savings on ground rent and service charges justify it.

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

The propensity since the credit crunch has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Halifax Minimum 70 years from the date of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

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

Regardless of whether you are a tenant or a landlord in Barnstaple,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barnstaple valuers.

Barnstaple Lease Extension Case Summaries:

Jayden, Barnstaple, Devon,

Jayden was the the leasehold owner of a studio flat in Barnstaple on the market with a lease of a little over 61 years outstanding. Jayden on an informal basis contacted his landlord a well known London-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 on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jayden to invoke his statutory right. Jayden procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.

Barnstaple case:

In 2013 we were e-mailed by Mrs Abbie Wood who, having was assigned a lease of a one bedroom apartment in Barnstaple in November 1997. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Similar residencies in Barnstaple with an extended lease were in the region of £186,000. The mid-range ground rent payable was £65 collected monthly. The lease terminated on 28 March 2080. Taking into account 58 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 plus costs.

Barnstaple case:

Ms Jodie Robinson purchased a purpose-built flat in Barnstaple in September 2009. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Barnstaple with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ran out in 2091. Taking into account 69 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.