Unfortunately that a Ingleby Barwick residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Ingleby Barwick property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Ingleby Barwick will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Ingleby Barwick,the lease extension solicitors 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 Ingleby Barwick valuers.
During the course of the last few months Stanley, started to get close to the 80-year mark with the lease on his studio apartment in Ingleby Barwick. Having purchased his home 18 years ago, the lease term was of minimal relevance. As luck would have it, he realised he would imminently be paying an inflated amount for Extending the lease. Stanley extended the lease at the eleventh hour in May. Stanley and the freeholder via the managing agents subsequently settled on sum of £5,000 . If he not met the deadline, the price would have become more exhorbitant by at least £1,150.
Mrs Eleanor Martínez took over the lease of a recently refurbished apartment in Ingleby Barwick in October 1996. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Ingleby Barwick with an extended lease were in the region of £183,600. The average ground rent payable was £65 billed per annum. The lease expired on 10 January 2082. Considering the 57 years outstanding we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of legals.
Dr M Walker bought a one bedroom flat in Ingleby Barwick in October 2010. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Identical flats in Ingleby Barwick with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 invoiced monthly. The lease finished in 2092. Taking into account 67 years remaining we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including expenses.