Barton le Willows leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Barton le Willows residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Barton le Willows you must see if your lease has between 70 and 90 years left. There are good reasons why a Barton le Willows flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Barton le Willows lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
18 months ago Hunter, came critically close to the eighty-year mark with the lease on his ground floor apartment in Barton le Willows. Having purchased his home two decades ago, the length of the lease was of minimal relevance. by good luck, he realised he needed to take action soon on a lease extension. Hunter extended the lease just under the wire in August. Hunter and the freeholder eventually agreed on the final figure of £6,000 . If the lease had gone lower than eighty years, the premium would have increased by at least £1,125.
Last February we were approach by Ms A Smith , who owned a recently refurbished flat in Barton le Willows in April 2010. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Barton le Willows with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed yearly. The lease finished on 2 January 2099. Taking into account 73 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2009 we were approached by Mr and Mrs. K Morris who, having was assigned a lease of a purpose-built flat in Barton le Willows in February 2000. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar homes in Barton le Willows with an extended lease were worth £264,000. The average ground rent payable was £60 invoiced monthly. The lease came to a finish on 13 November 2079. Having 53 years remaining we calculated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including legals.