When it comes to long leasehold premises in Burgess Hill, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are less than eighty years remaining. Leasehold owners in Burgess Hill with a lease nearing 81 years remaining should seriously consider extending it without delay. When a lease has below 80 years remaining, under the current statute the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Burgess Hill with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Yorkshire Building Society |
The lawyers that we work with procure Burgess Hill 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 lawyer we work with provide it.
Logan owned a high value flat in Burgess Hill on the market with a lease of a few days over 72 years outstanding. Logan on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Logan to invoke his statutory right. Logan obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last month we were phoned by Mr Blake Baker , who acquired a basement apartment in Burgess Hill in March 2009. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable residencies in Burgess Hill with an extended lease were worth £215,600. The average ground rent payable was £45 collected quarterly. The lease expiry date was on 16 July 2088. Given that there were 62 years unexpired we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of expenses.
Last Autumn we were phoned by Dr Toby Cooper , who bought a one bedroom flat in Burgess Hill in April 2010. The question was if we could approximate the price would be to extend the lease by 90 years. Comparable properties in Burgess Hill with 100 year plus lease were valued around £265,000. The average amount of ground rent was £50 invoiced every twelve months. The lease lapsed on 27 March 2099. Considering the 73 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.