Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Barry. Clearly, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Barry have the legal entitlement to extend the lease for an additional ninety years under statute. Please give careful consideration before delaying your Barry lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Barry with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Coventry Building Society | |
| Halifax | |
| Virgin |
The lawyers that we work with undertake Barry 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.
Michael was the the leasehold proprietor of a 2 bedroom apartment in Barry on the market with a lease of a few days over 59 years outstanding. Michael on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Michael to invoke his statutory right. Michael procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2011 we were e-mailed by Mr and Mrs. C Morel who, having was assigned a lease of a one bedroom flat in Barry in January 2001. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative properties in Barry with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed on 14 March 2102. Taking into account 76 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last Winter we were called by Mr and Mrs. V Smith , who was assigned a lease of a basement apartment in Barry in July 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar flats in Barry with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease ran out in 2082. Given that there were 56 years remaining we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including professional charges.