Unfortunately that a Barnstaple residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Barnstaple property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be payable. Most flat owners in Barnstaple will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Leeds Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
The conveyancing solicitors that we work with handle Barnstaple lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Aaron owned a conversion flat in Barnstaple being marketed with a lease of a few days over 59 years remaining. Aaron informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Aaron to exercise his statutory right. Aaron procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.
In 2009 we were approached by Mr and Mrs. K Gray who, having took over the lease of a garden apartment in Barnstaple in June 2008. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative properties in Barnstaple with a long lease were in the region of £218,000. The mid-range ground rent payable was £45 invoiced yearly. The lease elapsed in 2089. Considering the 63 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of legals.
Ms K Sharif acquired a garden apartment in Barnstaple in November 1998. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Barnstaple with a long lease were in the region of £270,000. The average ground rent payable was £55 billed yearly. The lease came to a finish in 2100. Having 74 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.