Barrowden leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Barrowden tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Barrowden you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Barrowden with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| National Westminster Bank | |
| TSB | |
| Virgin |
The conveyancing solicitors that we work with handle Barrowden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Ali was the the leasehold proprietor of a conversion flat in Barrowden being sold with a lease of a little over 72 years remaining. Ali on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Mr and Mrs. B Rose owned a first floor apartment in Barrowden in March 1999. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparative homes in Barrowden with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected every twelve months. The lease ended in 2095. Having 69 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
In 2009 we were e-mailed by Mr and Mrs. I Smith who, having took over the lease of a purpose-built flat in Barrowden in August 2002. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Barrowden with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £60 invoiced monthly. The lease ended in 2106. Considering the 80 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.