The market value of Little Burstead leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is less than eighty years
Leasehold residencies in Little Burstead with over one hundred years unexpired 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The conveyancing solicitors that we work with handle Little Burstead 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.
Gabriel owned a studio flat in Little Burstead on the market with a lease of just over 59 years outstanding. Gabriel on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
Mrs Maisie James owned a one bedroom apartment in Little Burstead in January 1997. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparative homes in Little Burstead with an extended lease were valued about £200,000. The mid-range ground rent payable was £50 collected yearly. The lease expiry date was in 2102. Considering the 77 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
Mr J Miller bought a first floor apartment in Little Burstead in March 2012. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative flats in Little Burstead with 100 year plus lease were valued about £260,200. The mid-range ground rent payable was £65 billed every twelve months. The lease ended on 27 April 2091. Considering the 66 years as a residual term we calculated the premium to the landlord to extend the lease to be between £16,200 and £18,600 plus costs.