The value of Burghfield Common leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is below than 80 years
Leasehold residencies in Burghfield Common with in excess of 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Burghfield Common can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Burghfield Common lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ibrahim owned a conversion flat in Burghfield Common being sold with a lease of just over 72 years outstanding. Ibrahim on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last September we were e-mailed by Mr Kyle Hill , who took over the lease of a one bedroom apartment in Burghfield Common in May 2012. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparative premises in Burghfield Common with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 billed yearly. The lease termination date was in 2097. Having 72 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Autumn we were e-mailed by Mr Sebastian Brown , who owned a first floor apartment in Burghfield Common in February 1996. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable residencies in Burghfield Common with a long lease were in the region of £256,600. The average ground rent payable was £60 billed every twelve months. The lease elapsed in 2077. Given that there were 52 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of legals.