The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Burghfield Common have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Burghfield Common lease extension. Postponing the costs today simply escalates the premium you will ultimately have to pay for a lease extension.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Burghfield Common leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Luca, started to get close to the eighty-year threshold with the lease on his garden apartment in Burghfield Common. Having bought his flat two decades ago, the lease term was of no interest. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Luca arranged for a lease extension at the eleventh hour last January. Luca and the freeholder eventually agreed on an amount of £5,500 . If the lease had fallen to less than eighty years, the price would have become more exhorbitant by at least £1,075.
Last Winter we were called by Mr and Mrs. U Campbell , who completed a studio flat in Burghfield Common in November 1999. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparable premises in Burghfield Common with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 collected quarterly. The lease ran out in 2100. Given that there were 75 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Mr Andrew Bell was assigned a lease of a one bedroom apartment in Burghfield Common in September 2012. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in Burghfield Common with 100 year plus lease were worth £168,800. The average amount of ground rent was £60 invoiced monthly. The lease came to a finish in 2080. Having 55 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.