Burghfield Common leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Burghfield Common will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises 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. |
| Birmingham Midshires | 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Burghfield Common,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Burghfield Common valuers.
Half a year ago Ollie, started to get close to the 80-year mark with the lease on his purpose- built flat in Burghfield Common. Having bought his home 19 years previously, the unexpired term was of no interest. As luck would have it, he realised he needed to take action soon on Extending the lease. Ollie was able to extend his lease just under the wire last June. Ollie and the landlord eventually settled on an amount of £6,000 . If the lease had dropped lower than eighty years, the amount would have become more costly by a minimum £900.
Last September we were contacted by Mr and Mrs. Y Lee , who took over the lease of a recently refurbished apartment in Burghfield Common in January 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Burghfield Common with 100 year plus lease were valued about £186,000. The mid-range ground rent payable was £65 collected yearly. The lease finished in 2084. Given that there were 58 years remaining we calculated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 exclusive of costs.
In 2009 we were phoned by Dr Elijah Moreau who, having purchased a one bedroom flat in Burghfield Common in August 2003. The question was if we could approximate the premium could be to prolong the lease by an additional years. Comparative homes in Burghfield Common with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease terminated on 4 October 2095. Given that there were 69 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.