Barrow upon Humber leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Barrow upon Humber residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Barrow upon Humber you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Barrow upon Humber,the lease extension experts that we work with will always be willing 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 upon Humber valuers.
Nathan owned a 2 bedroom apartment in Barrow upon Humber on the market with a lease of just over sixty years outstanding. Nathan on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr Kyle Smith moved into a first floor apartment in Barrow upon Humber in January 2003. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative flats in Barrow upon Humber with 100 year plus lease were worth £242,600. The mid-range ground rent payable was £45 invoiced monthly. The lease concluded on 20 September 2093. Given that there were 67 years outstanding we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including legals.
Last Winter we were called by Mr and Mrs. S Bennett , who moved into a basement apartment in Barrow upon Humber in June 2011. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical premises in Barrow upon Humber with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 invoiced every twelve months. The lease lapsed in 2104. Having 78 years remaining we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.