The closer a residential lease in Barry nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. The majority of flat owners in Barry will meet the qualifying criteria; however a lawyer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Barry with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Virgin |
Using our service will provide you increased control over the value of your Barry leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jake owned a high value flat in Barry on the market with a lease of just over 59 years outstanding. Jake informally spoke with his landlord a well known Bristol-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 an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jake to exercise his statutory right. Jake obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Dr K King purchased a basement apartment in Barry in August 2007. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical homes in Barry with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 invoiced annually. The lease ran out in 2083. Given that there were 57 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.
In 2012 we were approached by Mr and Mrs. B Hill who, having completed a one bedroom apartment in Barry in November 1997. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Barry with an extended lease were worth £245,000. The mid-range ground rent payable was £50 billed yearly. The lease concluded on 27 September 2094. Taking into account 68 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.