With a residential leasehold property in Great Barford, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Leasehold owners in Great Barford with a lease nearing 81 years unexpired should seriously consider extending it without delay. When a lease has below 80 years left, under the relevant Act the freeholder can calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| 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. |
| 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. |
| 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 procure guidance from a conveyancer and surveyor with experience in this area.
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 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.
Luke was the the leasehold owner of a studio apartment in Great Barford on the market with a lease of fraction over 72 years unexpired. Luke on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Luke to exercise his statutory right. Luke procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last Summer we were contacted by Dr Lewis Reed , who took over the lease of a one bedroom apartment in Great Barford in July 2012. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable residencies in Great Barford with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease came to a finish in 2103. Taking into account 77 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last Winter we were contacted by Mr and Mrs. R Lefèvre , who moved into a first floor apartment in Great Barford in February 1999. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable properties in Great Barford with 100 year plus lease were in the region of £265,200. The average amount of ground rent was £65 invoiced monthly. The lease lapsed on 24 February 2092. Considering the 66 years remaining we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of costs.