Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Barnehurst. Clearly, the length of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Barnehurst have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give careful attention before putting off your Barnehurst lease extension. Putting off that expense now simply increases the price you will ultimately incur for a lease extension
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a landlord in Barnehurst,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barnehurst valuers.
Ethan was the the leasehold proprietor of a high value apartment in Barnehurst being sold with a lease of just over sixty years unexpired. Ethan on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were phoned by Ms Kayleigh Petit who, having acquired a studio flat in Barnehurst in March 2000. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative properties in Barnehurst with an extended lease were in the region of £240,600. The average ground rent payable was £60 billed every twelve months. The lease ended on 17 January 2087. Given that there were 62 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus costs.
An example of a Lease Extension case for a Barnehurst premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The unexpired residue of the current lease was 76 years.