Earls Barton residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold residencies in Earls Barton with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Earls Barton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Earls Barton valuers.
Aarav was the the leasehold proprietor of a conversion flat in Earls Barton on the market with a lease of fraction over sixty years outstanding. Aarav informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Mrs Erin Anderson moved into a studio flat in Earls Barton in January 1995. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable premises in Earls Barton with 100 year plus lease were valued around £264,000. The average ground rent payable was £60 collected yearly. The lease concluded on 17 August 2078. Considering the 53 years left we approximated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of legals.
Dr U Walker was assigned a lease of a one bedroom flat in Earls Barton in November 1999. The question was if we could approximate the price could be for a ninety year lease extension. Comparable properties in Earls Barton with 100 year plus lease were in the region of £225,400. The average ground rent payable was £45 invoiced quarterly. The lease finished in 2089. Considering the 64 years left we calculated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 plus costs.