When it comes to domestic leasehold property in Barons Court, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Residents in Barons Court with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has fewer than eighty years left, under the current statute the landlord is entitled to calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Barons Court leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oliver was the the leasehold proprietor of a 2 bedroom apartment in Barons Court being marketed with a lease of a few days over 72 years unexpired. Oliver on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Oliver to exercise his statutory right. Oliver obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2014 we were e-mailed by Mr E White who, having took over the lease of a basement flat in Barons Court in January 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Barons Court with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2097. Considering the 71 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
An example of a Freehold Enfranchisement decision for a Barons Court property 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 related to 2 flats. The remaining number of years on the lease was 68.32 years.