With a residential leasehold property in Barrow Upon Soar, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years left. Residents in Barrow Upon Soar with a lease nearing 81 years unexpired should seriously consider extending it without delay. When the lease term has less than eighty years remaining, under the current legislation the freeholder can calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Barrow Upon Soar with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Barrow Upon Soar,the lease extension lawyers 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 Soar valuers.
Hugo was the the leasehold owner of a 2 bedroom apartment in Barrow Upon Soar on the market with a lease of just over fifty eight years left. Hugo on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Last Autumn we were approach by Mr and Mrs. B Edwards , who moved into a first floor flat in Barrow Upon Soar in July 1999. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparative premises in Barrow Upon Soar with a long lease were worth £295,000. The mid-range ground rent payable was £45 collected yearly. The lease ended in 2100. Considering the 74 years unexpired we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.
Last Summer we were e-mailed by Mr and Mrs. S Gómez , who owned a purpose-built apartment in Barrow Upon Soar in July 2000. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable premises in Barrow Upon Soar with a long lease were valued around £243,000. The average amount of ground rent was £65 collected yearly. The lease ran out on 17 February 2089. Taking into account 63 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including professional charges.