Chances are that if you own a flat in Barry you actually own a long leasehold interest over your property
Leasehold properties in Barry with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Barry,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barry valuers.
Subsequent to protracted discussions with the landlord of her leasehold apartment in Barry, Amelia initiated the lease extension process just as her lease was approaching the critical 80-year threshold. The transaction was finalised in November 2005. The landlord’s charges were negotiated to about 600 GBP.
Ms Yasmin Murphy completed a first floor flat in Barry in January 1998. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable residencies in Barry with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £55 billed quarterly. The lease end date was in 2100. Considering the 74 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2012 we were approached by Mr Riley Anderson who, having was assigned a lease of a recently refurbished apartment in Barry in May 2007. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar flats in Barry with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 invoiced annually. The lease came to a finish on 21 July 2080. Having 54 years remaining we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of costs.