Barton Le Clay leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Barton Le Clay residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Barton Le Clay you really ought to see if your lease has between 70 and 90 years left. There are compelling reasons why a Barton Le Clay leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Barton Le Clay with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Barton Le Clay leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Felix owned a 2 bedroom apartment in Barton Le Clay being marketed with a lease of fraction over 61 years remaining. Felix informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Felix to invoke his statutory right. Felix procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Autumn we were e-mailed by Mrs D Moreau , who was assigned a lease of a garden apartment in Barton Le Clay in May 2012. We are asked if we could approximate the price would be for a 90 year lease extension. Identical homes in Barton Le Clay with 100 year plus lease were valued around £250,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed on 10 March 2094. Given that there were 69 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2014 we were phoned by Ms C Norbert who, having acquired a ground floor flat in Barton Le Clay in July 2005. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable flats in Barton Le Clay with a long lease were worth £290,000. The average amount of ground rent was £60 collected monthly. The lease finished in 2105. Considering the 80 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.