Unfortunately that a Great Barford residential lease is a deteriorating 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 depreciation being disguised by increases in the Great Barford property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Great Barford will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Great Barford can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 a wealth of experience dealing with Great Barford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Tommy, came dangerously close to the eighty-year mark with the lease on his ground floor apartment in Great Barford. In buying his flat 19 years previously, the length of the lease was of minimal interest. Fortunately, he became aware that he needed to take action soon on a lease extension. Tommy was able to extend his lease just under the wire last March. Tommy and the freeholder via the managing agents in the end settled on an amount of £6,000 . If he not met the deadline, the figure would have increased by at least £925.
In 2009 we were approached by Dr Freddie Adams who, having took over the lease of a first floor apartment in Great Barford in September 2009. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative properties in Great Barford with 100 year plus lease were valued around £210,000. The average amount of ground rent was £50 billed quarterly. The lease elapsed on 3 January 2106. Given that there were 80 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
In 2011 we were called by Dr Georgina Davies who, having purchased a basement flat in Great Barford in November 1998. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Similar flats in Great Barford with a long lease were worth £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease finished in 2095. Having 69 years unexpired we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.