When it comes to long leasehold property in Barrow In Furness, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Residents in Barrow In Furness with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years remaining, under the relevant legislation the freeholder can calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
Lease extensions in Barrow In Furness can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Barrow In Furness lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harrison was the the leasehold proprietor of a high value apartment in Barrow In Furness on the market with a lease of a little over sixty years remaining. Harrison informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Last Spring we were approach by Dr Aarav Fournier , who took over the lease of a garden flat in Barrow In Furness in July 2010. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable properties in Barrow In Furness with a long lease were valued about £256,600. The mid-range ground rent payable was £60 billed every twelve months. The lease ended on 20 October 2077. Taking into account 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £41,800 and £48,400 not including legals.
Mr Austin Moore owned a basement apartment in Barrow In Furness in November 1997. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Identical flats in Barrow In Furness with an extended lease were worth £218,000. The mid-range ground rent payable was £45 collected every twelve months. The lease finished on 20 February 2088. Taking into account 63 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 plus costs.