Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Barrow Upon Soar. Inevitably, the length of lease left reduces over time. This is often ignored and only becomes a problem when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Barrow Upon Soar have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful attention before delaying your Barrow Upon Soar lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Virgin |
Lease extensions in Barrow Upon Soar can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
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.
In recent months Hunter, came very near to the eighty-year threshold with the lease on his garden apartment in Barrow Upon Soar. In buying his flat two decades ago, the unexpired term was of little bearing. Thankfully, he became aware that he needed to take steps soon on a lease extension. Hunter was able to extend his lease just in the nick of time in September. Hunter and the freeholder via the management company ultimately settled on the final figure of £5,000 . If the lease had dropped lower than 80 years, the price would have become more exhorbitant by a minimum £1,125.
Last year we were phoned by Mr and Mrs. A Johnson , who purchased a basement flat in Barrow Upon Soar in October 2004. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable properties in Barrow Upon Soar with 100 year plus lease were worth £240,600. The average amount of ground rent was £60 collected per annum. The lease expiry date was in 2088. Having 62 years remaining we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including costs.
Last March we were contacted by Mr and Mrs. I Petit , who owned a basement flat in Barrow Upon Soar in July 2002. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative premises in Barrow Upon Soar with an extended lease were valued about £174,200. The average amount of ground rent was £55 collected annually. The lease ended in 2077. Given that there were 51 years outstanding we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus professional charges.