With a domestic leasehold premises in Great Barford, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than 80 years remaining. Leasehold owners in Great Barford with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years left, under the relevant statute the freeholder can calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Great Barford with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
Lease extensions in Great Barford can be a difficult process. We recommend you procure guidance from a lawyer 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 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.
Leo owned a conversion flat in Great Barford on the market with a lease of a few days over sixty years unexpired. Leo on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Leo to invoke his statutory right. Leo procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last October we were e-mailed by Mrs Ellen Bertrand , who completed a one bedroom apartment in Great Barford in April 2006. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical homes in Great Barford with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease elapsed in 2096. Considering the 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.
In 2014 we were e-mailed by Mr and Mrs. M Hernández who, having owned a garden flat in Great Barford in June 1995. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparative homes in Great Barford with 100 year plus lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease elapsed in 2085. Given that there were 59 years remaining we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of costs.