The value of Barry Island leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than eighty years
Leasehold properties in Barry Island with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Barry Island,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 experience and the close ties they enjoy with Barry Island valuers.
Subsequent to lengthy discussions with the freeholder of her studio apartment in Barry Island, Rebecca started the lease extension process just as the lease was nearing the critical 80-year threshold. The transaction was concluded in June 2012. The freeholder’s charges were kept to an absolute minimum.
Mr I Parker took over the lease of a garden flat in Barry Island in June 1998. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Barry Island with an extended lease were in the region of £218,000. The average amount of ground rent was £45 collected yearly. The lease end date was in 2089. Taking into account 63 years remaining we estimated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including professional charges.
Dr Chelsea Ward took over the lease of a first floor apartment in Barry Island in November 1997. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Identical homes in Barry Island with an extended lease were valued around £265,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished on 25 June 2100. Given that there were 74 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.