Barrow Upon Soar leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Barrow Upon Soar will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Barrow Upon Soar,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 experience and the close ties they enjoy with Barrow Upon Soar valuers.
Henry was the the leasehold owner of a conversion flat in Barrow Upon Soar on the market with a lease of fraction over 59 years remaining. Henry informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Henry to exercise his statutory right. Henry obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
Last Summer we were contacted by Ms Chelsea Lefèvre , who completed a purpose-built flat in Barrow Upon Soar in March 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable properties in Barrow Upon Soar with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £45 invoiced yearly. The lease lapsed on 13 March 2095. Taking into account 69 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
Mr and Mrs. E Ward moved into a garden flat in Barrow Upon Soar in April 2006. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparable residencies in Barrow Upon Soar with an extended lease were worth £216,000. The average ground rent payable was £60 invoiced monthly. The lease came to a finish on 13 January 2084. Considering the 58 years outstanding we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of costs.