Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Burgess Hill. Inevitably, the period of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Burgess Hill have the right to extend the lease for an additional 90 years under legislation. Do give careful deliberation before delaying your Burgess Hill lease extension. Putting off the cost now only increases the price you will eventually have to pay for a lease extension
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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 30 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. |
| 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. |
Using our service gives you better control over the value of your Burgess Hill leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Aaron owned a conversion flat in Burgess Hill being marketed with a lease of a little over 59 years remaining. Aaron informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Aaron to exercise his statutory right. Aaron procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.
Mr and Mrs. R Vincent was assigned a lease of a studio flat in Burgess Hill in November 2001. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable residencies in Burgess Hill with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease finished on 17 August 2095. Taking into account 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
In 2013 we were contacted by Dr Daniel Moore who, having bought a first floor apartment in Burgess Hill in May 1996. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical properties in Burgess Hill with a long lease were valued around £290,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease concluded in 2106. Given that there were 80 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.