Burnham 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. Most owners of residential leasehold property in Burnham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Burnham you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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 are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Burnham can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
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 Burnham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jonathan was the the leasehold owner of a 2 bedroom flat in Burnham being marketed with a lease of just over 61 years outstanding. Jonathan informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Jonathan to invoke his statutory right. Jonathan procured expert advice and secured an acceptable deal informally and sell the property.
Last August we were called by Dr Amelia Allen , who owned a one bedroom flat in Burnham in May 2006. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparable premises in Burnham with an extended lease were valued about £166,800. The mid-range amount of ground rent was £50 collected every twelve months. The lease came to a finish on 26 May 2076. Considering the 50 years remaining we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of fees.
Dr H Hill was assigned a lease of a ground floor flat in Burnham in January 1998. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparative homes in Burnham with a long lease were worth £280,000. The mid-range ground rent payable was £45 billed quarterly. The lease expired in 2096. Having 70 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.