Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Barnehurst. Clearly, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Barnehurst have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give due attention before putting off your Barnehurst lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
Leasehold premises in Barnehurst with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| National Westminster Bank | 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. |
Lease extensions in Barnehurst can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in this area.
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 dealing with Barnehurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Jayden, came seriously near to the eighty-year mark with the lease on his one bedroom apartment in Barnehurst. In buying his flat two decades ago, the length of the lease was of no concern. Fortunately, he became aware that he would imminently be paying an inflated amount for a lease extension. Jayden extended the lease just under the wire last May. Jayden and the landlord ultimately settled on the final figure of £5,000 . If he not met the deadline, the figure would have become more costly by a minimum £1,100.
In 2009 we were e-mailed by Mr and Mrs. I Adams who, having took over the lease of a first floor flat in Barnehurst in April 1998. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable residencies in Barnehurst with an extended lease were valued around £205,000. The average ground rent payable was £50 billed monthly. The lease terminated in 2103. Having 79 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
An example of a Lease Extension case for a Barnehurst property is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The unexpired residue of the current lease was 76 years.