As the length of the unexpired term of a Barton Le Clay residential lease lessens so does its value and therefore the value of your property. Where the lease has, more than 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Barton Le Clay will meet the qualifying criteria; that being said a conveyancing solicitor should be able to confirm 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 Barton Le Clay with in excess of one hundred years left 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Barton Le Clay can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 procuring Barton Le Clay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Aaron, started to get near to the 80-year mark with the lease on his first floor apartment in Barton Le Clay. Having purchased his property 18 years previously, the unexpired term was of little interest. by good luck, he realised he needed to take steps soon on Extending the lease. Aaron extended the lease just in the nick of time last July. Aaron and the landlord eventually agreed on a premium of £5,000 . If the lease had descended to less than 80 years, the price would have escalated by at least £900.
In 2010 we were called by Mr Mason Gómez who, having owned a purpose-built apartment in Barton Le Clay in February 2008. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Barton Le Clay with 100 year plus lease were valued about £173,800. The average ground rent payable was £60 collected per annum. The lease finished on 10 September 2080. Having 55 years unexpired we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of fees.
In 2009 we were called by Mr and Mrs. L Sánchez who, having purchased a garden flat in Barton Le Clay in May 2012. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative flats in Barton Le Clay with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ran out on 15 March 2091. Given that there were 66 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.