Great Barford leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Great Barford will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Great Barford with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
The lawyers that we work with procure Great Barford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Two years ago Logan, came seriously near to the eighty-year threshold with the lease on his basement flat in Great Barford. Having bought his flat two decades ago, the length of the lease was of minimal concern. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Logan arranged for a lease extension just under the wire last June. Logan and the freeholder in the end agreed on the final figure of £6,000 . If he had missed the deadline, the price would have gone up by at least £900.
Last Autumn we were e-mailed by Mr and Mrs. D Pérez , who purchased a garden flat in Great Barford in March 2005. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparative properties in Great Barford with 100 year plus lease were valued around £189,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease lapsed in 2077. Considering the 53 years outstanding we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
Mr S Williams completed a recently refurbished apartment in Great Barford in January 2000. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparative flats in Great Barford with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 collected annually. The lease expiry date was in 2097. Having 73 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.