The only way is down when it comes to Barry lease terms. Barry leaseholds that have a residual term less than than eighty years will drop in market price even faster, and the cost to extend your lease will go up.
Leasehold properties in Barry with in excess of 100 years unexpired 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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 lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Jonathan, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Barry. Having bought his home twenty years previously, the unexpired term was of no importance. Luckily, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Jonathan was able to extend his lease just under the wire in May. Jonathan and the freeholder eventually settled on an amount of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £1,075.
Last Winter we were e-mailed by Ms W Phillips , who purchased a ground floor flat in Barry in March 2008. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Barry with 100 year plus lease were in the region of £173,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease elapsed on 22 October 2080. Having 55 years outstanding we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.
In 2009 we were called by Mr and Mrs. H Davis who, having bought a one bedroom flat in Barry in November 2005. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical properties in Barry with 100 year plus lease were valued around £235,200. The mid-range amount of ground rent was £45 billed quarterly. The lease expired in 2091. Given that there were 66 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.