When it comes to residential leasehold property in Great Barford, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years remaining. Residents in Great Barford with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When a lease has below eighty years remaining, under the current statute the freeholder can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Great Barford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Great Barford valuers.
Subsequent to lengthy negotiations with the landlord of her garden flat in Great Barford, Niamh initiated the lease extension process as the eighty year threshold was fast coming. The transaction was concluded in May 2011. The landlord’s costs were kept to an absolute minimum.
In 2012 we were approached by Dr Rory Rose who, having moved into a one bedroom apartment in Great Barford in May 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar homes in Great Barford with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease concluded on 15 May 2104. Having 79 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
In 2009 we were phoned by Ms Isabel Morgan who, having took over the lease of a purpose-built apartment in Great Barford in May 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Great Barford with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease concluded in 2093. Having 68 years unexpired we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.