Barrow In Furness leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Barrow In Furness tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Barrow In Furness you should see if your lease has between 70 and 90 years left. There are good reasons why a Barrow In Furness leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Barrow In Furness with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Barrow In Furness leasehold, as your property will be more valuable and marketable in terms 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.
Kyle was the the leasehold proprietor of a high value flat in Barrow In Furness on the market with a lease of a little over 61 years remaining. Kyle on an informal basis approached his landlord being a well known local-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 an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Kyle to exercise his statutory right. Kyle procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Mr A Roux bought a one bedroom apartment in Barrow In Furness in June 1998. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable premises in Barrow In Furness with 100 year plus lease were valued about £260,000. The mid-range ground rent payable was £50 collected yearly. The lease termination date was on 15 March 2099. Considering the 73 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.
Dr George Roberts moved into a one bedroom apartment in Barrow In Furness in February 2009. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparative homes in Barrow In Furness with 100 year plus lease were valued around £264,000. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish on 19 August 2079. Taking into account 53 years left we estimated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 plus professional charges.