Unfortunately that a East Barming residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the East Barming property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term dips under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in East Barming will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in East Barming with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in East Barming can be a difficult process. We recommend you obtain guidance from a conveyancer 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 a wealth of experience procuring East Barming lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful negotiations with the landlord of her basement apartment in East Barming, Hollie commenced the lease extension process as the 80 year deadline was rapidly advancing. The transaction completed in May 2011. The freeholder’s costs were negotiated to about 600 pounds.
Dr U Murphy purchased a purpose-built flat in East Barming in May 1996. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Similar homes in East Barming with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease elapsed in 2103. Considering the 77 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.
Last month we were approach by Dr B Adams , who bought a basement flat in East Barming in February 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in East Barming with a long lease were worth £183,600. The average ground rent payable was £65 billed per annum. The lease ended on 10 September 2083. Taking into account 57 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.