Barons Court leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Barons Court will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Barons Court with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Barons Court 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 lawyer we work with provide it.
Oliver owned a conversion flat in Barons Court being marketed with a lease of a little over sixty years left. Oliver informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Oliver to invoke his statutory right. Oliver procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2011 we were phoned by Dr A Lewis who, having moved into a one bedroom apartment in Barons Court in July 2011. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative premises in Barons Court with an extended lease were worth £275,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease concluded in 2095. Taking into account 69 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Barons Court flat 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 unexpired term was 68.32 years.