Burbage leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Burbage will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Burbage with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Burbage lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of unsuccessful negotiations with the freeholder of her first floor flat in Burbage, Megan commenced the lease extension process as the eighty year deadline was quickly approaching. The legal work was concluded in September 2007. The landlord’s fees were negotiated to approximately 600 GBP.
Last September we were contacted by Mr and Mrs. J Rodríguez , who moved into a first floor apartment in Burbage in May 2005. We are asked if we could estimate the premium would be to extend the lease by an additional years. Identical homes in Burbage with an extended lease were worth £201,200. The average amount of ground rent was £55 invoiced yearly. The lease termination date was on 1 October 2082. Having 56 years as a residual term we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including legals.
Last Winter we were phoned by Mr and Mrs. C Vincent , who moved into a purpose-built flat in Burbage in May 2004. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical premises in Burbage with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish on 13 January 2102. Given that there were 76 years left we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.