It’s a harsh certainty that a Barnstaple residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Barnstaple property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term falls under 80 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 the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Barnstaple will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Barnstaple with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Using our service will provide you increased control over the value of your Barnstaple leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy correspondence with the landlord of her ground floor apartment in Barnstaple, Elizabeth started the lease extension process as the eighty year deadline was rapidly coming. The legal work was finalised in March 2008. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were called by Mrs Sarah Martinez , who bought a ground floor apartment in Barnstaple in May 2007. We are asked if we could estimate the price would be to prolong the lease by an additional years. Similar flats in Barnstaple with an extended lease were in the region of £235,200. The average amount of ground rent was £45 collected monthly. The lease ran out in 2091. Given that there were 66 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
Last Spring we were called by Dr Tommy Lee , who bought a purpose-built flat in Barnstaple in September 2000. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Identical homes in Barnstaple with an extended lease were valued around £280,000. The average amount of ground rent was £55 invoiced annually. The lease elapsed on 15 October 2102. Having 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.