When it comes to residential leasehold premises in Barton Upon Humber, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than eighty years left. Leasehold owners in Barton Upon Humber with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has fewer than 80 years outstanding, under the relevant statute the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Barton Upon Humber with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Barton Upon Humber can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Barton Upon Humber lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted correspondence with the freeholder of her leasehold flat in Barton Upon Humber, Ellie initiated the lease extension process as the 80 year deadline was quickly approaching. The legal work completed in November 2009. The freeholder’s costs were restricted to less than 700 GBP.
Ms W Moreau owned a studio flat in Barton Upon Humber in July 1995. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable residencies in Barton Upon Humber with an extended lease were worth £210,600. The average amount of ground rent was £45 invoiced yearly. The lease finished in 2087. Taking into account 62 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus fees.
In 2011 we were contacted by Mr and Mrs. H Gray who, having bought a garden flat in Barton Upon Humber in August 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Similar properties in Barton Upon Humber with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease termination date was on 16 April 2098. Taking into account 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.