Barton le Willows leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Barton le Willows will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Barton le Willows leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Dylan, started to get near to the 80-year mark with the lease on his garden flat in Barton le Willows. Having bought his flat two decades ago, the lease term was of no bearing. by good luck, he became aware that he needed to take steps soon on Extending the lease. Dylan arranged for a lease extension just under the wire last September. Dylan and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If he failed to meet the deadline, the premium would have become more costly by a minimum £1,125.
In 2010 we were e-mailed by Mr and Mrs. W Sharif who, having moved into a first floor flat in Barton le Willows in October 1997. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Barton le Willows with 100 year plus lease were worth £218,000. The mid-range ground rent payable was £45 billed annually. The lease finished in 2088. Taking into account 63 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 plus costs.
Dr L Scott took over the lease of a ground floor apartment in Barton le Willows in October 1997. The question was if we could estimate the premium could be for a 90 year lease extension. Identical properties in Barton le Willows with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 billed yearly. The lease terminated on 15 April 2099. Considering the 74 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.