When it comes to long leasehold premises in Barton Le Clay, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Residents in Barton Le Clay with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. When a lease has below eighty years outstanding, under the current statute the freeholder can calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Barton Le Clay leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harry was the the leasehold proprietor of a 2 bedroom apartment in Barton Le Clay being sold with a lease of fraction over 59 years outstanding. Harry on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
In 2013 we were e-mailed by Dr Jacob Leroy who, having took over the lease of a first floor flat in Barton Le Clay in October 1998. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable homes in Barton Le Clay with 100 year plus lease were valued about £193,400. The mid-range amount of ground rent was £65 billed annually. The lease ran out on 6 April 2083. Considering the 59 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including costs.
Last year we were called by Mr and Mrs. A Adams , who bought a purpose-built apartment in Barton Le Clay in July 2002. We are asked if we could approximate the price could be to extend the lease by 90 years. Identical premises in Barton Le Clay with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 billed per annum. The lease elapsed in 2094. Having 70 years remaining we estimated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 not including professional charges.