Great Barford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Great Barford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Great Barford you would be well advised to see if your lease has between seventy and 90 years left. There are good reasons why a Great Barford flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Great Barford with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Great Barford can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 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.
Cameron was the the leasehold owner of a 2 bedroom apartment in Great Barford being sold with a lease of fraction over 72 years left. Cameron on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Cameron to exercise his statutory right. Cameron procured expert advice and secured satisfactory resolution informally and readily saleable.
Mr and Mrs. A Morris bought a first floor flat in Great Barford in September 2008. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Great Barford with an extended lease were valued around £233,200. The mid-range amount of ground rent was £60 collected annually. The lease terminated in 2087. Having 61 years remaining we calculated the premium to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of professional charges.
In 2011 we were called by Dr S Pérez who, having completed a one bedroom flat in Great Barford in March 1996. The question was if we could approximate the premium would be to prolong the lease by 90 years. Similar homes in Great Barford with an extended lease were in the region of £171,800. The average amount of ground rent was £55 invoiced per annum. The lease lapsed on 28 March 2076. Considering the 50 years left we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of fees.