On the balance of probabilities if you own a flat in West Barnes you actually own a long leasehold interest over your property
Leasehold properties in West Barnes with over 100 years remaining 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 property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your West Barnes leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful negotiations with the landlord of her basement flat in West Barnes, Francesca started the lease extension process just as the lease was approaching the crucial 80-year threshold. The transaction was concluded in March 2007. The landlord’s costs were restricted to below 700 GBP.
Last Summer we were contacted by Mr Harvey Young , who owned a newly refurbished flat in West Barnes in September 2002. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in West Barnes with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 billed annually. The lease terminated in 2081. Considering the 56 years remaining we approximated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a West Barnes premises is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case affected 1 flat.