The closer a domestic lease in Burnt Oak nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 125 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Burnt Oak will qualify for this right; however a conveyancer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The lawyers that we work with handle Burnt Oak lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Stanley was the the leasehold proprietor of a studio flat in Burnt Oak on the market with a lease of a few days over sixty years outstanding. Stanley informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were phoned by Dr Owen Carter , who took over the lease of a one bedroom apartment in Burnt Oak in April 2007. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparative properties in Burnt Oak with 100 year plus lease were in the region of £230,800. The mid-range ground rent payable was £60 invoiced monthly. The lease elapsed on 6 November 2084. Considering the 60 years remaining we approximated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 not including expenses.
An example of a Lease Extension case for a Burnt Oak property is 20 Orchard Court Stonegrove in June 2009. The tribunal decided that a premium of £11,040 should be payable for the new lease This case affected 1 flat. The unexpired lease term was 71.55 years.