Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Burgess Hill. Clearly, the term of lease left shortens over time. This is often overlooked and only becomes a problem when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Burgess Hill have the legal entitlement to extend the lease for an additional 90 years under legislation. Do give due attention before putting off your Burgess Hill lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Burgess Hill with over 100 years remaining on the lease are sometimes 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
The conveyancing solicitors that we work with handle 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.
Subsequent to protracted correspondence with the freeholder of her one bedroom flat in Burgess Hill, Sophia started the lease extension process just as her lease was approaching the critical 80-year mark. The legal work was concluded in July 2013. The freeholder’s fees were negotiated to under 500 GBP.
Last April we were contacted by Dr N Collins , who moved into a first floor apartment in Burgess Hill in July 2011. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Burgess Hill with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease ran out on 21 July 2078. Having 53 years left we estimated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus professional charges.
Last Christmas we were approach by Dr M Rogers , who completed a garden flat in Burgess Hill in October 1996. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Burgess Hill with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 collected annually. The lease terminated in 2089. Considering the 64 years remaining we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of expenses.