There is no doubt about it a leasehold flat or house in Barnsbury is a wasting asset as a result of the diminishing lease term. Where the lease has, more than one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Barnsbury will qualify for this right; nevertheless a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Barnsbury with more than 100 years unexpired 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Barnsbury,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 experience and the close ties they enjoy with Barnsbury valuers.
Last Christmas Benjamin, came precariously near to the eighty-year threshold with the lease on his leasehold flat in Barnsbury. In buying his flat two decades ago, the lease term was of minimal significance. Fortunately, he recognised he needed to take action soon on a lease extension. Benjamin was able to extend his lease just ahead of time in September. Benjamin and the landlord who owned the flat above in the end settled on an amount of £6,000 . If he had missed the deadline, the price would have escalated by at least £875.
In 2011 we were phoned by Mr and Mrs. N Johnson who, having took over the lease of a one bedroom apartment in Barnsbury in February 2008. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Similar premises in Barnsbury with a long lease were worth £250,400. The mid-range amount of ground rent was £65 billed monthly. The lease came to a finish in 2090. Given that there were 64 years as a residual term we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus legals.
An example of a Lease Extension case for a Barnsbury property 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 term was 62.79 years.