As the length of the unexpired term of a Great Barford domestic lease lessens so does its value and therefore the value of your property. If the residual term has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner rather than later. Many flat owners in Great Barford will qualify for this right; however a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Great Barford with over one hundred years unexpired 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Great Barford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Great Barford valuers.
In the wake of eight months of unsuccessful correspondence with the landlord of her studio flat in Great Barford, Rosie initiated the lease extension process as the 80 year threshold was fast nearing. The legal work was finalised in April 2009. The landlord’s costs were restricted to slightly above 550 pounds.
Dr Georgina Miller completed a ground floor apartment in Great Barford in September 1999. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparable properties in Great Barford with 100 year plus lease were in the region of £171,800. The mid-range ground rent payable was £55 collected quarterly. The lease terminated in 2075. Taking into account 50 years unexpired we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus legals.
Dr Amelia White bought a newly refurbished flat in Great Barford in April 2002. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable premises in Great Barford with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2095. Given that there were 70 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.