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Top reasons for Barrow In Furness lease extension


Main reasons to start your Barrow In Furness lease extension today:

Increase your lease and increase your Barrow In Furness property value

The only way is down when it comes to Barrow In Furness lease terms. Barrow In Furness leaseholds that have a remaining term fewer than 80 years will drop in value at a rapid rate, and the cost of extending your lease will increase.

Barrow In Furness property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions may not finance a property on a short lease

Nearly all mortgage lenders require a lengthy amount of time left on any leasehold residence before they will consider it as adequate security. Even if you don't require a mortgage, you should be aware that it is reasonable to assume that someone intending to buy your property in the future might well do, so where they can't get a mortgage, then the value of your property could suffer. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are prepared to lend on

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Birmingham Midshires Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaining from the start of the mortgage.
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
Royal Bank of Scotland Mortgage term plus 30 years.

What makes us experts in Barrow In Furness lease extensions?

Irrespective of whether you are a tenant or a landlord in Barrow In Furness,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barrow In Furness valuers.

Barrow In Furness Lease Extension Case Summaries:

Sarah, Barrow In Furness, Cumbria,

After unsuccessful discussions with the freeholder of her purpose-built apartment in Barrow In Furness, Sarah started the lease extension process just as her lease was approaching the all-important eighty-year threshold. The transaction completed in April 2007. The landlord’s costs were restricted to approximately 600 pounds.

Barrow In Furness case:

In 2011 we were contacted by Dr Aiden Lefèvre who, having purchased a ground floor apartment in Barrow In Furness in October 2003. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative properties in Barrow In Furness with an extended lease were in the region of £168,800. The average amount of ground rent was £60 billed quarterly. The lease terminated in 2080. Considering the 55 years left we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus expenses.

Barrow In Furness case:

Mrs E Thomas moved into a purpose-built apartment in Barrow In Furness in March 1996. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Comparative homes in Barrow In Furness with 100 year plus lease were valued around £235,200. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expiry date was in 2091. Considering the 66 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.