Barnstaple leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Barnstaple will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Barnstaple with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Santander | |
| Skipton Building Society | |
| Virgin |
Lease extensions in Barnstaple can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
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 a wealth of experience dealing with Barnstaple lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John owned a conversion apartment in Barnstaple on the market with a lease of fraction over 72 years left. John on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were John to invoke his statutory right. John procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were called by Ms F Bonnet who, having completed a studio apartment in Barnstaple in March 2011. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparable homes in Barnstaple with an extended lease were valued about £173,800. The mid-range ground rent payable was £60 collected yearly. The lease lapsed on 28 September 2081. Considering the 55 years outstanding we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including legals.
In 2013 we were approached by Mrs G Scott who, having owned a studio apartment in Barnstaple in June 2006. The question was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Identical residencies in Barnstaple with an extended lease were valued about £235,200. The average ground rent payable was £45 invoiced every twelve months. The lease concluded in 2092. Given that there were 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.