Barry 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 gets more expensive. Most owners of residential leasehold property in Barry enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Barry you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Barry with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Barry can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
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 a wealth of experience dealing with Barry lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Elijah owned a conversion apartment in Barry being marketed with a lease of just over 61 years unexpired. Elijah informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Winter we were e-mailed by Dr Jasper Nguyen , who purchased a purpose-built flat in Barry in September 2002. The question was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Similar residencies in Barry with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 billed every twelve months. The lease termination date was in 2090. Taking into account 64 years outstanding we approximated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 not including professional charges.
Mrs Katie López bought a purpose-built apartment in Barry in July 2001. The question was if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparative premises in Barry with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish in 2101. Having 75 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.