The nearer a residential lease in Barrow In Furness gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Barrow In Furness will qualify for this right; that being said a lawyer will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | 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. |
| 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 undertake Barrow In Furness 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 conveyancer we work with provide it.
Charlie was the the leasehold owner of a conversion apartment in Barrow In Furness being marketed with a lease of a few days over 59 years left. Charlie informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Charlie to invoke his statutory right. Charlie obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Ms I Hall was assigned a lease of a studio flat in Barrow In Furness in March 2012. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Identical residencies in Barrow In Furness with 100 year plus lease were worth £237,600. The mid-range amount of ground rent was £45 billed yearly. The lease terminated on 17 October 2092. Taking into account 67 years unexpired we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of costs.
Last month we were approach by Mr Y Turner , who bought a one bedroom apartment in Barrow In Furness in April 2012. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable premises in Barrow In Furness with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 invoiced per annum. The lease came to a finish in 2103. Taking into account 78 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.