With a long leasehold property in Barry, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Barry with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below eighty years remaining, under the current statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Barry with more than one hundred years outstanding 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 purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you better control over the value of your Barry leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
James was the the leasehold proprietor of a conversion flat in Barry on the market with a lease of just over fifty eight years remaining. James informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms 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. Ordinarily, ground rent would not be payable on a lease extension were James to invoke his statutory right. James obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Mr Y Collins owned a purpose-built apartment in Barry in January 1995. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Identical premises in Barry with an extended lease were worth £250,000. The average amount of ground rent was £50 collected every twelve months. The lease termination date was on 13 July 2095. Taking into account 69 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Last Spring we were e-mailed by Mrs R Martinez , who purchased a studio apartment in Barry in April 1995. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Barry with a long lease were worth £285,000. The average ground rent payable was £55 invoiced every twelve months. The lease concluded in 2106. Having 80 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.