Barrow upon Humber leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Barrow upon Humber tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Barrow upon Humber you should check if your lease has between 70 and ninety years remaining. There are good reasons why a Barrow upon Humber leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay
Leasehold premises in Barrow upon Humber with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Retaining our service gives you increased control over the value of your Barrow upon Humber leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her purpose-built flat in Barrow upon Humber, Rachael initiated the lease extension process as the 80 year threshold was rapidly advancing. The lease extension completed in January 2006. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. U Thomas took over the lease of a basement flat in Barrow upon Humber in November 2005. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Barrow upon Humber with a long lease were in the region of £200,800. The average ground rent payable was £65 billed per annum. The lease expiry date was on 15 April 2085. Having 60 years unexpired we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.
In 2009 we were contacted by Mr L López who, having took over the lease of a garden flat in Barrow upon Humber in August 2007. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Similar properties in Barrow upon Humber with a long lease were worth £255,000. The mid-range ground rent payable was £50 collected annually. The lease expired in 2096. Considering the 71 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.