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 extending the lease can escalate substantially once the unexpired lease term is less than 80 years
Leasehold properties in Barton Le Clay with in excess of 100 years unexpired 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Barton Le Clay,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barton Le Clay valuers.
In 2014 Aarav, came very close to the eighty-year threshold with the lease on his studio flat in Barton Le Clay. Having bought his property 19 years previously, the unexpired term was of minimal bearing. Fortunately, he recognised he needed to take steps soon on Extending the lease. Aarav was able to extend his lease just under the wire last September. Aarav and the landlord ultimately settled on the final figure of £6,000 . If he had missed the deadline, the price would have gone up by at least £850.
In 2013 we were e-mailed by Ms D Hernández who, having acquired a purpose-built flat in Barton Le Clay in September 2006. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Barton Le Clay with a long lease were worth £261,600. The average amount of ground rent was £60 invoiced yearly. The lease ended in 2076. Considering the 52 years unexpired we calculated the premium to the landlord for the lease extension to be within £39,000 and £45,000 plus professional charges.
Dr Anna Patel moved into a one bedroom apartment in Barton Le Clay in January 1998. We are asked if we could estimate the price would be to extend the lease by ninety years. Similar homes in Barton Le Clay with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 billed yearly. The lease expired in 2087. Given that there were 63 years outstanding we estimated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus costs.