When it comes to residential leasehold premises in Barlborough, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years remaining. Residents in Barlborough with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below eighty years left, under the current Act the freeholder can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Barlborough,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barlborough valuers.
Subsequent to protracted discussions with the freeholder of her leasehold apartment in Barlborough, Nicole initiated the lease extension process just as the lease was approaching the crucial eighty-year mark. The legal work was finalised in February 2014. The freeholder’s charges were restricted to less than 600 pounds.
Mr T Dupont acquired a ground floor flat in Barlborough in February 2003. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparable homes in Barlborough with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease ended in 2082. Given that there were 58 years left we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus expenses.
Last June we were contacted by Mr and Mrs. N Martínez , who moved into a ground floor flat in Barlborough in February 2000. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparable homes in Barlborough with a long lease were worth £205,000. The average amount of ground rent was £50 collected every twelve months. The lease expiry date was on 23 April 2102. Taking into account 78 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.