Unfortunately that a Barnsbury residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Barnsbury property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term drops below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Barnsbury will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Barnsbury with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Using our service gives you enhanced control over the value of your Barnsbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aarav was the the leasehold proprietor of a high value apartment in Barnsbury on the market with a lease of just over 72 years unexpired. Aarav on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Aarav to invoke his statutory right. Aarav procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last month we were approach by Ms Louise King , who acquired a studio apartment in Barnsbury in January 1996. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable flats in Barnsbury with 100 year plus lease were worth £240,600. The mid-range amount of ground rent was £60 collected quarterly. The lease expiry date was on 1 June 2088. Having 62 years remaining we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus expenses.
An example of a Lease Extension matter before the tribunal 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 term was 62.79 years.