The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Great Barford can extend the lease for a further 90 years under legislation. Do think carefully before delaying your Great Barford lease extension. Shelving that expense today simply escalates the price you will eventually have to pay to extend the lease.
Leasehold residencies in Great Barford with more than 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 estate 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. |
| 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Great Barford,the lease extension solicitors 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 6 months of protracted negotiations with the freeholder of her leasehold apartment in Great Barford, Danielle started the lease extension process as the eighty year threshold was quickly coming. The lease extension completed in July 2014. The freeholder’s fees were restricted to below five hundred pounds.
Last Summer we were contacted by Mr and Mrs. N Morris , who completed a purpose-built flat in Great Barford in August 2007. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Similar properties in Great Barford with a long lease were worth £285,000. The average amount of ground rent was £45 billed yearly. The lease elapsed in 2096. Having 71 years as a residual term we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
Mr C Peterson moved into a garden apartment in Great Barford in May 1999. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Great Barford with a long lease were in the region of £225,800. The mid-range ground rent payable was £60 collected every twelve months. The lease concluded on 7 June 2085. Given that there were 60 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of legals.