There is no doubt about it a leasehold flat or house in Burbage and Hinckley is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. Many flat owners in Burbage and Hinckley will qualify for this right; that being said a conveyancer should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Burbage and Hinckley with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Burbage and Hinckley leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jack was the the leasehold proprietor of a 2 bedroom flat in Burbage and Hinckley being sold with a lease of fraction over 61 years remaining. Jack on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Jack to invoke his statutory right. Jack procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Ms Mollie Ward completed a ground floor apartment in Burbage and Hinckley in May 2008. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Identical premises in Burbage and Hinckley with 100 year plus lease were in the region of £240,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease ended on 19 April 2087. Taking into account 62 years remaining we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.
In 2012 we were contacted by Mr and Mrs. K Mitchell who, having purchased a one bedroom apartment in Burbage and Hinckley in November 2008. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative residencies in Burbage and Hinckley with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 billed annually. The lease ended on 9 July 2076. Given that there were 51 years remaining we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.