The market value of a leasehold property in Barrow Upon Soar is impacted by how long the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed ahead of the eighty year threshold. Current legislation enables Barrow Upon Soar qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Barrow Upon Soar with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Barrow Upon Soar can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 dealing with Barrow Upon Soar lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac owned a high value flat in Barrow Upon Soar being sold with a lease of a few days over 72 years remaining. Isaac informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last year we were contacted by Mr O Lambert , who completed a one bedroom apartment in Barrow Upon Soar in March 2005. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative properties in Barrow Upon Soar with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease elapsed in 2104. Considering the 79 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Last Winter we were contacted by Ms T Morgan , who completed a ground floor flat in Barrow Upon Soar in November 2009. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Comparative premises in Barrow Upon Soar with a long lease were worth £275,000. The mid-range amount of ground rent was £65 collected quarterly. The lease terminated on 18 April 2093. Considering the 68 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.