With a long leasehold premises in Burnham On Crouch, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are fewer than eighty years left. Residents in Burnham On Crouch with a lease approaching 81 years left should seriously consider extending it without delay. When the lease term has below 80 years outstanding, under the relevant Act the landlord is entitled to calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Burnham On Crouch with in excess of 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Burnham On Crouch can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Burnham On Crouch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Reuben, came critically close to the 80-year mark with the lease on his garden apartment in Burnham On Crouch. Having bought his home 18 years previously, the lease term was of no concern. As luck would have it, he noticed he would soon be paying an inflated amount for Extending the lease. Reuben was able to extend his lease just under the wire last April. Reuben and the landlord who owned the flat above eventually settled on a premium of £5,500 . If he not met the deadline, the premium would have escalated by a minimum £1,100.
Mr and Mrs. V Ward moved into a basement flat in Burnham On Crouch in July 2010. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Similar premises in Burnham On Crouch with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced annually. The lease came to a finish on 12 October 2103. Having 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.
In 2012 we were e-mailed by Mr and Mrs. L Scott who, having bought a one bedroom flat in Burnham On Crouch in February 2002. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar flats in Burnham On Crouch with an extended lease were in the region of £186,000. The average amount of ground rent was £65 billed annually. The lease concluded in 2083. Having 58 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 plus professional charges.