Burbage and Hinckley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Burbage and Hinckley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Burbage and Hinckley you really ought to check if your lease has between seventy and ninety years left. There are good reasons why a Burbage and Hinckley leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay
Leasehold premises in Burbage and Hinckley with more than 100 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 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 |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | 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 will provide you enhanced control over the value of your Burbage and Hinckley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Matthew was the the leasehold proprietor of a conversion apartment in Burbage and Hinckley being marketed with a lease of just over 59 years remaining. Matthew on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Matthew to invoke his statutory right. Matthew procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Ms Aimee Mercier was assigned a lease of a recently refurbished flat in Burbage and Hinckley in May 2001. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar residencies in Burbage and Hinckley with 100 year plus lease were valued around £181,600. The average ground rent payable was £55 invoiced annually. The lease expired on 21 March 2078. Considering the 52 years left we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of legals.
In 2009 we were approached by Mr and Mrs. I François who, having acquired a studio apartment in Burbage and Hinckley in August 2005. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar properties in Burbage and Hinckley with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease elapsed on 28 September 2098. Given that there were 72 years left we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including fees.