On the balance of probabilities if you own a flat in Burbage you actually own a long leasehold interest over your property
Leasehold premises in Burbage with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Lease extensions in Burbage can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 dealing with Burbage lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the freeholder of her basement apartment in Burbage, Megan initiated the lease extension process as the 80 year threshold was rapidly advancing. The legal work was finalised in September 2007. The landlord’s fees were kept to an absolute minimum.
Last Winter we were called by Ms Y Gunderson , who purchased a newly refurbished apartment in Burbage in November 1998. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparable flats in Burbage with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated on 6 April 2103. Considering the 77 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
Last Spring we were e-mailed by Mrs T Garcia , who was assigned a lease of a one bedroom apartment in Burbage in May 2001. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Similar flats in Burbage with an extended lease were in the region of £260,200. The mid-range amount of ground rent was £65 billed monthly. The lease expired in 2092. Given that there were 66 years remaining we estimated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus legals.