Unfortunately that a Great Barford 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 Great Barford property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will end up paying 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 The majority of leasehold owners in Great Barford will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. 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 lawyer from beginning to end of the formalities.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Santander |
Engaging our service gives you increased control over the value of your Great Barford leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Connor was the the leasehold owner of a conversion flat in Great Barford being marketed with a lease of a few days over sixty years remaining. Connor on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Connor to exercise his statutory right. Connor obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr Ashleigh Ward was assigned a lease of a studio apartment in Great Barford in April 2009. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar homes in Great Barford with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 billed monthly. The lease ended on 8 October 2080. Given that there were 54 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including costs.
In 2014 we were approached by Mr Tommy Hernández who, having was assigned a lease of a one bedroom flat in Great Barford in September 2010. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar premises in Great Barford with an extended lease were in the region of £295,000. The average amount of ground rent was £45 collected yearly. The lease expired in 2100. Given that there were 74 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.