Burnham leases on domestic deteriorating in value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Burnham will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Burnham with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘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 upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | 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. |
| Yorkshire 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. |
Using our service will provide you increased control over the value of your Burnham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alex was the the leasehold proprietor of a conversion flat in Burnham being marketed with a lease of just over 61 years outstanding. Alex on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alex to invoke his statutory right. Alex procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last month we were contacted by Mr and Mrs. G Morris , who acquired a basement apartment in Burnham in March 2010. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Similar residencies in Burnham with an extended lease were worth £280,000. The mid-range ground rent payable was £45 invoiced annually. The lease expired in 2094. Taking into account 70 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
Mr and Mrs. M Brown purchased a ground floor flat in Burnham in March 2007. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative premises in Burnham with a long lease were valued about £223,400. The average ground rent payable was £60 billed monthly. The lease ran out on 11 January 2083. Taking into account 59 years left we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 plus expenses.