With a long leasehold property in Burbage and Hinckley, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in Burbage and Hinckley with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below eighty years left, under the current legislation the freeholder is entitled to calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Burbage and Hinckley can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Burbage and Hinckley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the landlord of her two bedroom apartment in Burbage and Hinckley, Yasmin commenced the lease extension process as the 80 year threshold was swiftly advancing. The lease extension was concluded in July 2005. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were contacted by Dr Hugo González who, having moved into a studio apartment in Burbage and Hinckley in July 2004. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Burbage and Hinckley with 100 year plus lease were valued about £171,800. The average ground rent payable was £55 invoiced per annum. The lease concluded in 2076. Considering the 50 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including legals.
Dr R Peterson took over the lease of a purpose-built flat in Burbage and Hinckley in October 1995. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative homes in Burbage and Hinckley with a long lease were worth £280,000. The mid-range amount of ground rent was £45 billed per annum. The lease came to a finish on 9 August 2096. Given that there were 70 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.