On the balance of probabilities if you own a flat in Barrow upon Humber you actually own a long leasehold interest over your property
Leasehold premises in Barrow upon Humber with in excess of one hundred years left on the lease are sometimes regarded as a ‘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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Barrow upon Humber,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barrow upon Humber valuers.
Ibrahim owned a studio apartment in Barrow upon Humber being sold with a lease of fraction over 59 years unexpired. Ibrahim on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert advice and secured satisfactory resolution informally and readily saleable.
Dr Stanley Stewart moved into a purpose-built apartment in Barrow upon Humber in October 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Comparative flats in Barrow upon Humber with a long lease were worth £250,000. The average amount of ground rent was £50 invoiced quarterly. The lease terminated in 2095. Considering the 69 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
In 2014 we were approached by Dr O Lewis who, having moved into a first floor apartment in Barrow upon Humber in April 2003. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Identical properties in Barrow upon Humber with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 billed per annum. The lease ran out in 2106. Taking into account 80 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.