As the the remaining lease term of a Earls Barton residential lease diminished so does its value and therefore the value of your property. Where the lease has, beyond 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner rather than later. Many flat owners in Earls Barton will meet the qualifying criteria; however a lawyer will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using 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 terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Oscar owned a 2 bedroom apartment in Earls Barton on the market with a lease of just over 72 years remaining. Oscar informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Mrs Isabella Dupont was assigned a lease of a garden flat in Earls Barton in April 2009. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Comparable premises in Earls Barton with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 invoiced monthly. The lease terminated on 14 April 2082. Given that there were 56 years unexpired we calculated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of fees.
Mrs Katherine Leroy was assigned a lease of a one bedroom apartment in Earls Barton in September 1998. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative premises in Earls Barton with an extended lease were worth £242,600. The average ground rent payable was £45 billed yearly. The lease ended in 2093. Having 67 years remaining we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus costs.