The market value of Barton Le Clay leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the unexpired lease term is less than eighty years
Leasehold premises in Barton Le Clay with over one hundred years left on the lease are often referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Barton Le Clay leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Mason was the the leasehold proprietor of a conversion apartment in Barton Le Clay being marketed with a lease of a few days over fifty eight years outstanding. Mason informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Mason to invoke his statutory right. Mason procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were e-mailed by Dr S Sharif who, having completed a purpose-built apartment in Barton Le Clay in June 2009. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable homes in Barton Le Clay with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 collected monthly. The lease ended in 2095. Considering the 69 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Last July we were called by Dr U Sharif , who bought a basement flat in Barton Le Clay in July 2002. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar flats in Barton Le Clay with an extended lease were valued around £285,000. The mid-range ground rent payable was £55 billed quarterly. The lease finished on 1 June 2106. Having 80 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.