It’s a harsh truth that a Barnstaple residential lease is a wasting 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 deflation being disguised by increases in the Barnstaple property market.Where your lease has approximately 90 years left, you should start thinking about 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 dips below 80 years - otherwise a higher amount will be due. The majority of flat owners in Barnstaple will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| Yorkshire 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. |
Lease extensions in Barnstaple can be a difficult process. We recommend you procure professional help from a lawyer 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 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.
William owned a 2 bedroom apartment in Barnstaple being marketed with a lease of just over sixty years left. William on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were William to invoke his statutory right. William procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last Spring we were e-mailed by Mr D Flores , who bought a garden flat in Barnstaple in June 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Barnstaple with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 billed yearly. The lease ran out on 10 January 2086. Given that there were 60 years unexpired we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including professional charges.
Dr M Girard purchased a studio flat in Barnstaple in March 2000. The question was if we could approximate the price would be to extend the lease by a further 90 years. Comparative flats in Barnstaple with 100 year plus lease were valued about £260,000. The mid-range amount of ground rent was £50 billed annually. The lease came to a finish in 2097. Having 71 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.