It’s a harsh truth that a Burbage and Hinckley residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Burbage and Hinckley property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. Most flat owners in Burbage and Hinckley will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold residencies in Burbage and Hinckley with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works | |
| Virgin |
Regardless of whether you are a tenant or a freeholder in Burbage and Hinckley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Burbage and Hinckley valuers.
After protracted negotiations with the landlord of her ground floor apartment in Burbage and Hinckley, Jordan commenced the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction completed in March 2007. The landlord’s charges were negotiated to under 650 pounds.
Last Spring we were called by Mr Andrew Vincent , who bought a studio flat in Burbage and Hinckley in September 2005. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Identical residencies in Burbage and Hinckley with an extended lease were valued about £213,600. The mid-range amount of ground rent was £60 collected per annum. The lease expiry date was on 4 February 2083. Taking into account 57 years left we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.
Mrs Alicia Campbell acquired a studio apartment in Burbage and Hinckley in January 1999. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Comparative premises in Burbage and Hinckley with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 billed every twelve months. The lease terminated on 2 August 2103. Taking into account 77 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.