Barnehurst leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease drops below eighty years - otherwise a higher premium will be payable. Leasehold owners in Barnehurst will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 increased control over the value of your Barnehurst leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Austin owned a 2 bedroom flat in Barnehurst being marketed with a lease of a little over 72 years outstanding. Austin informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Austin to invoke his statutory right. Austin procured expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2010 we were called by Mr and Mrs. F Simon who, having purchased a purpose-built apartment in Barnehurst in May 2002. The question was if we could estimate the premium could be for a ninety year extension to my lease. Similar flats in Barnehurst with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 billed yearly. The lease concluded on 16 June 2083. Taking into account 58 years as a residual term we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Barnehurst residence 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 related to 13 flats. The remaining number of years on the lease was 76 years.