Earls Barton leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Earls Barton will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Earls Barton with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you better control over the value of your Earls Barton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her basement flat in Earls Barton, Caitlin started the lease extension process just as her lease was approaching the crucial eighty-year deadline. The legal work completed in May 2010. The freeholder’s charges were restricted to approximately 650 GBP.
Dr Andrew Girard was assigned a lease of a basement apartment in Earls Barton in August 1995. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Identical flats in Earls Barton with a long lease were worth £191,000. The mid-range amount of ground rent was £65 collected per annum. The lease came to a finish in 2083. Having 58 years remaining we estimated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus expenses.
Mr I Rodríguez purchased a purpose-built apartment in Earls Barton in September 2011. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative properties in Earls Barton with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out in 2094. Having 69 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.