The value of Great Barford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is less than eighty years
Leasehold properties in Great Barford with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Great Barford can be a difficult process. We recommend you get professional help from a conveyancer 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 Benjamin, came precariously near to the 80-year threshold with the lease on his two bedroom apartment in Great Barford. Having purchased his home 18 years ago, the length of the lease was of no significance. Fortunately, he realised he would imminently be paying way over the odds for Extending the lease. Benjamin extended the lease just in the nick of time last April. Benjamin and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If the lease had dropped below 80 years, the figure would have escalated by a minimum £1,125.
In 2014 we were called by Ms Isobel Bailey who, having took over the lease of a garden apartment in Great Barford in May 1999. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Identical homes in Great Barford with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended on 21 March 2098. Considering the 72 years left we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including legals.
Last Spring we were contacted by Dr L Bertrand , who took over the lease of a one bedroom apartment in Great Barford in May 2005. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Great Barford with a long lease were worth £233,200. The mid-range amount of ground rent was £60 collected monthly. The lease expiry date was in 2087. Considering the 61 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of costs.