The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Great Barford have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give careful consideration before delaying your Great Barford lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend the lease.
Leasehold premises in Great Barford with over one hundred years outstanding 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Great Barford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Great Barford valuers.
Last Summer Sam, started to get close to the 80-year mark with the lease on his one bedroom apartment in Great Barford. In buying his property two decades ago, the length of the lease was of minimal bearing. Luckily, he noticed he needed to take steps soon on Extending the lease. Sam extended the lease just ahead of time last July. Sam and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If the lease had slipped lower than eighty years, the figure would have become more costly by at least £1,075.
Last month we were approach by Mr Sebastian Wilson , who acquired a basement apartment in Great Barford in July 2004. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Great Barford with a long lease were valued around £225,800. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish on 22 March 2085. Having 60 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 exclusive of legals.
Last Summer we were phoned by Mr and Mrs. G Parker , who owned a garden flat in Great Barford in July 2007. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Great Barford with an extended lease were worth £210,000. The average ground rent payable was £50 billed yearly. The lease lapsed in 2105. Considering the 80 years remaining we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.