Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Barons Court. Clearly, the term of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Barons Court have the right to extend the lease for an additional ninety years in accordance with legislation. Do give due deliberation before delaying your Barons Court lease extension. Putting off the cost now likely increases the price you will eventually have to pay for a lease extension
Leasehold properties in Barons Court with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Chelsea 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Barons Court,the lease extension solicitors 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 Barons Court valuers.
Trailing unsuccessful correspondence with the landlord of her two bedroom flat in Barons Court, Gemma commenced the lease extension process as the 80 year threshold was quickly approaching. The legal work was finalised in June 2010. The landlord’s charges were restricted to about 550 pounds.
Last Summer we were approach by Mr and Mrs. R Davis , who completed a one bedroom apartment in Barons Court in March 1999. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable flats in Barons Court with a long lease were worth £300,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ended on 3 February 2101. Given that there were 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
An example of a Freehold Enfranchisement decision for a Barons Court residence is 19 Crisp Road in June 2009. Following a vesting order (Under section 26 of the Leasehold Reform,Housing and Urban Development Act 1993) The tribunal determined that the premium payable for the acquisition of the freehold was £33,756,apportioned as to£12,285 for the lower at and £21,471for the upper fat. This case affected 2 flats. The number of years remaining on the existing lease(s) was 68.32 years.