Barnt Green leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Barnt Green residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Barnt Green you must see if your lease has between 70 and ninety years left. There are good reasons why a Barnt Green flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Barnt Green leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alfie owned a studio flat in Barnt Green being marketed with a lease of a few days over 59 years left. Alfie informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.
Dr T Lewis completed a newly refurbished apartment in Barnt Green in May 2006. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Barnt Green with a long lease were worth £166,800. The average ground rent payable was £50 billed yearly. The lease came to a finish on 22 June 2076. Taking into account 50 years left we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including costs.
Mr and Mrs. M Wilson completed a ground floor apartment in Barnt Green in January 2000. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical flats in Barnt Green with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish in 2096. Given that there were 70 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.