There is no doubt about it a leasehold flat or house in Burnham is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner as opposed to later. Most flat owners in Burnham will qualify for this right; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Burnham with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Retaining our service gives you better control over the value of your Burnham leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Aaron, came perilously near to the 80-year threshold with the lease on his two bedroom flat in Burnham. In buying his flat two decades ago, the lease term was of no relevance. Thankfully, it dawned on him that he would soon be paying an inflated amount for a lease extension. Aaron was able to extend his lease at the eleventh hour in January. Aaron and the freeholder in the end settled on the final figure of £6,000 . If the lease had gone to less than 80 years, the sum would have become more exhorbitant by a minimum £850.
In 2010 we were contacted by Mr Blake François who, having was assigned a lease of a recently refurbished flat in Burnham in July 2002. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Similar residencies in Burnham with 100 year plus lease were valued about £174,200. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out on 17 May 2077. Having 51 years as a residual term we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus professional charges.
Last Spring we were phoned by Mrs Jennifer Turner , who took over the lease of a ground floor apartment in Burnham in August 2004. The question was if we could estimate the price could be for a 90 year extension to my lease. Comparable premises in Burnham with a long lease were worth £285,000. The average amount of ground rent was £45 collected monthly. The lease expired in 2097. Considering the 71 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.