Barry Island leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Barry Island tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Barry Island you must check if your lease has between seventy and ninety 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 pay is what is known as a marriage value
Leasehold properties in Barry Island with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 Barry Island can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Barry Island lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Logan, started to get near to the 80-year mark with the lease on his basement apartment in Barry Island. In buying his flat 18 years previously, the unexpired term was of minimal concern. by good luck, he became aware that he needed to take action soon on a lease extension. Logan arranged for a lease extension just under the wire in September. Logan and the landlord who owned the flat above ultimately settled on sum of £5,500 . If the lease had fallen below eighty years, the premium would have escalated by a minimum £1,100.
Last Summer we were approach by Mr and Mrs. T Harris , who took over the lease of a ground floor apartment in Barry Island in January 2007. The question was if we could approximate the premium could be to extend the lease by 90 years. Similar flats in Barry Island with 100 year plus lease were valued about £227,800. The mid-range amount of ground rent was £45 billed yearly. The lease lapsed in 2090. Taking into account 65 years left we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.
Last January we were e-mailed by Mrs Ashleigh Hall , who moved into a purpose-built apartment in Barry Island in May 2010. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparable flats in Barry Island with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease lapsed on 7 April 2101. Having 76 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.