East Barming leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most East Barming tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in East Barming you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in East Barming with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in East Barming,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 East Barming valuers.
William was the the leasehold owner of a conversion flat in East Barming being sold with a lease of just over fifty eight years unexpired. William informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were William to invoke his statutory right. William obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Summer we were phoned by Mr and Mrs. C Bailey , who purchased a purpose-built flat in East Barming in July 2007. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Similar residencies in East Barming with a long lease were worth £166,400. The average amount of ground rent was £60 billed annually. The lease termination date was in 2080. Taking into account 54 years remaining we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.
Dr Kate Cook was assigned a lease of a one bedroom apartment in East Barming in November 2005. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Comparable properties in East Barming with a long lease were in the region of £227,800. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease finished in 2091. Having 65 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.