It’s an underpublicised certainty that a Barrow In Furness residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Barrow In Furness property prices.Once your lease gets to 85ish years, you should 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 slips below eighty years - otherwise a higher amount will be payable. Most flat owners in Barrow In Furness will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Barrow In Furness with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Barrow In Furness can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor 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 procuring Barrow In Furness lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the landlord of her garden flat in Barrow In Furness, Abigail initiated the lease extension process just as the lease was approaching the all-important eighty-year mark. The legal work completed in February 2012. The landlord’s costs were negotiated to less than 700 GBP.
In 2011 we were called by Mrs Molly Roux who, having purchased a ground floor apartment in Barrow In Furness in February 2010. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Comparative residencies in Barrow In Furness with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced per annum. The lease lapsed in 2101. Taking into account 77 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.
Last month we were called by Dr Imogen Leroy , who bought a purpose-built apartment in Barrow In Furness in May 2000. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical properties in Barrow In Furness with 100 year plus lease were valued about £183,600. The mid-range amount of ground rent was £65 collected per annum. The lease ended in 2081. Given that there were 57 years remaining we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.