As the length of the unexpired term of a Barnsbury residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond 99 years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Barnsbury will qualify for this right; nevertheless a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Barnsbury can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Barnsbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Freddie, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Barnsbury. In buying his property two decades ago, the lease term was of little bearing. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Freddie was able to extend his lease just under the wire in August. Freddie and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If the lease had slipped to less than 80 years, the price would have gone up by a minimum £1,100.
Last Summer we were approach by Ms I Ward , who was assigned a lease of a ground floor flat in Barnsbury in October 1996. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar homes in Barnsbury with a long lease were valued about £265,200. The average ground rent payable was £65 invoiced per annum. The lease termination date was in 2092. Given that there were 66 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 plus legals.
An example of a Lease Extension decision for a Barnsbury flat is Flat 120, Clare Court Judd Street in August 2013. the Tribunal held that the premium to be paid for the extension of the lease should be £64,650 This case related to 1 flat. The unexpired residue of the current lease was 62.79 years.