The nearer a residential lease in Barnehurst nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Barnehurst will meet the qualifying criteria; however a lawyer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
Lease extensions in Barnehurst can be a difficult process. We recommend you secure guidance from a lawyer and surveyor 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 dealing with Barnehurst lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the freeholder of her one bedroom apartment in Barnehurst, Hannah commenced the lease extension process just as the lease was coming close to the all-important 80-year threshold. The legal work was finalised in August 2008. The freeholder’s fees were restricted to under 550 pounds.
In 2014 we were contacted by Dr P Martínez who, having acquired a basement apartment in Barnehurst in August 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical properties in Barnehurst with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 collected per annum. The lease finished in 2095. Considering the 70 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
An example of a Lease Extension matter before the tribunal for a Barnehurst property 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.