With a domestic leasehold premises in Burghfield Common, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Residents in Burghfield Common with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has under eighty years left, under the relevant statute the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with handle Burghfield Common 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 conveyancing solicitor we work with provide it.
Ibrahim was the the leasehold owner of a conversion flat in Burghfield Common on the market with a lease of a little over fifty eight years outstanding. Ibrahim informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert advice and secured satisfactory deal informally and sell the property.
In 2014 we were e-mailed by Ms M Phillips who, having completed a newly refurbished flat in Burghfield Common in August 2012. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar premises in Burghfield Common with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 collected per annum. The lease concluded on 1 October 2077. Having 51 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 plus expenses.
Mr and Mrs. I Hall bought a ground floor apartment in Burghfield Common in October 1999. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable homes in Burghfield Common with an extended lease were valued around £210,600. The average amount of ground rent was £45 billed monthly. The lease end date was in 2088. Having 62 years unexpired we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus professional charges.