With a long leasehold premises in Burbage, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Anyone in Burbage with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has fewer than 80 years outstanding, under the relevant legislation the freeholder can calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Burbage can be a difficult process. We recommend you get professional help 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 in-depth market knowledge 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.
Off the back of unsuccessful correspondence with the landlord of her two bedroom apartment in Burbage, Lily commenced the lease extension process as the eighty year deadline was swiftly advancing. The transaction completed in February 2014. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were contacted by Mr L Green who, having owned a studio apartment in Burbage in March 2002. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparative flats in Burbage with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 collected annually. The lease lapsed in 2095. Considering the 70 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
Last month we were called by Mr Nathaniel Jones , who took over the lease of a studio flat in Burbage in November 2012. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Burbage with 100 year plus lease were worth £218,400. The average ground rent payable was £60 billed monthly. The lease ran out in 2084. Taking into account 59 years left we calculated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of legals.