Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Barrow Upon Soar. Clearly, the length of lease left reduces over time. This is often overlooked 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 it will cost to extend the lease. Qualifying long lease owners in Barrow Upon Soar have the legal entitlement to extend the lease for a further ninety years under statute. You should give careful attention before delaying your Barrow Upon Soar lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Barrow Upon Soar can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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.
Sebastian was the the leasehold owner of a 2 bedroom apartment in Barrow Upon Soar on the market with a lease of just over 61 years remaining. Sebastian on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr Blake Rodríguez bought a one bedroom flat in Barrow Upon Soar in October 2012. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Barrow Upon Soar with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 collected per annum. The lease end date was on 24 May 2092. Having 67 years remaining we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus fees.
Last month we were e-mailed by Mrs C Martin , who purchased a basement apartment in Barrow Upon Soar in March 2011. The dilemma was if we could estimate the price could be for a ninety year lease extension. Identical properties in Barrow Upon Soar with a long lease were in the region of £206,200. The mid-range amount of ground rent was £55 billed annually. The lease concluded in 2081. Taking into account 56 years unexpired we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.