When it comes to long leasehold premises in Barton Seagrave, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Anyone in Barton Seagrave with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has fewer than 80 years left, under the current legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Barton Seagrave with in excess of 100 years remaining 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake Barton Seagrave 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 lawyer we work with provide it.
Kian was the the leasehold proprietor of a high value flat in Barton Seagrave on the market with a lease of fraction over 59 years left. Kian informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Kian to invoke his statutory right. Kian obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Last Christmas we were e-mailed by Mr Tommy González , who moved into a one bedroom flat in Barton Seagrave in May 2011. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Barton Seagrave with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease terminated in 2085. Given that there were 60 years left we approximated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 not including expenses.
Last year we were called by Mr and Mrs. L Williams , who purchased a ground floor apartment in Barton Seagrave in August 2011. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar flats in Barton Seagrave with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected per annum. The lease came to a finish in 2095. Considering the 70 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.