Unfortunately that a Barnsbury residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Barnsbury property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be payable. The majority of flat owners in Barnsbury will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Santander | |
| Skipton Building Society | |
| TSB |
Using our service gives you better control over the value of your Barnsbury leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the landlord of her one bedroom apartment in Barnsbury, Hannah started the lease extension process just as her lease was coming close to the critical 80-year deadline. The legal work was finalised in March 2009. The landlord’s fees were restricted to a tad over five hundred pounds.
Last November we were phoned by Mr E Taylor , who acquired a ground floor apartment in Barnsbury in June 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Similar homes in Barnsbury with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 billed quarterly. The lease concluded in 2084. Considering the 58 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
An example of a Lease Extension decision for a Barnsbury premises 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 affected 1 flat. The remaining number of years on the lease was 62.79 years.