As the length of the unexpired term of a Burbage residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Burbage will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Burbage with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Burbage can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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 in-depth market knowledge procuring 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 protracted discussions with the landlord of her basement flat in Burbage, Nicole initiated the lease extension process as the 80 year deadline was swiftly coming. The lease extension completed in April 2012. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. V Smith bought a one bedroom apartment in Burbage in September 1997. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparative properties in Burbage with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease concluded in 2101. Taking into account 75 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
In 2012 we were e-mailed by Mrs Poppy Peterson who, having acquired a one bedroom apartment in Burbage in October 2006. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative premises in Burbage with a long lease were worth £250,400. The mid-range ground rent payable was £65 invoiced annually. The lease elapsed on 23 February 2090. Considering the 64 years left we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus professional charges.