Chances are that if you own a flat in Burnham you actually own a long leasehold interest over your property
Leasehold properties in Burnham with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Burnham can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 in-depth market knowledge 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.
In the wake of 6 months of protracted correspondence with the freeholder of her one bedroom flat in Burnham, Elizabeth commenced the lease extension process just as the lease was coming close to the all-important eighty-year mark. The legal work completed in January 2012. The freeholder’s costs were negotiated to approximately 550 pounds.
Last Summer we were approach by Dr Finn Peterson , who acquired a purpose-built flat in Burnham in July 2007. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar residencies in Burnham with an extended lease were in the region of £201,200. The average ground rent payable was £55 billed annually. The lease terminated in 2081. Given that there were 56 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.
In 2009 we were phoned by Mrs G Jackson who, having moved into a one bedroom apartment in Burnham in March 1995. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Burnham with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 billed per annum. The lease ran out on 20 September 2101. Having 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.