Unfortunately that a Barnstaple residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Barnstaple property prices.Once your lease nears 85ish years, you need to 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 falls below 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Barnstaple will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. 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 conveyancer for the duration of the formalities.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society | |
| Santander |
Lease extensions in Barnstaple can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Barnstaple lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Owen was the the leasehold owner of a high value apartment in Barnstaple on the market with a lease of a little over 72 years outstanding. Owen informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Owen to exercise his statutory right. Owen obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2010 we were phoned by Mr and Mrs. B Laurent who, having was assigned a lease of a purpose-built apartment in Barnstaple in August 2007. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Similar residencies in Barnstaple with an extended lease were valued about £193,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease ended on 22 March 2085. Taking into account 59 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including expenses.
Dr Isabelle Dupont owned a basement flat in Barnstaple in November 2011. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable residencies in Barnstaple with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease ran out on 1 April 2096. Having 70 years left we calculated the compensation to the freeholder for the lease extension to be within £10,500 and £12,000 not including professional charges.