Burghfield Common leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Burghfield Common enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Burghfield Common you must check if your lease has between 70 and 90 years left. There are compelling reasons why a Burghfield Common leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Burghfield Common with over one hundred 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Burghfield Common can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with 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.
Reuben owned a conversion flat in Burghfield Common on the market with a lease of a little over fifty eight years remaining. Reuben informally approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Reuben to invoke his statutory right. Reuben obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Winter we were e-mailed by Mr M Martinez , who purchased a first floor apartment in Burghfield Common in May 2002. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative premises in Burghfield Common with an extended lease were worth £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease came to a finish in 2085. Having 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including costs.
Mr Austin David acquired a newly refurbished apartment in Burghfield Common in May 1998. The question was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar homes in Burghfield Common with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease finished in 2096. Given that there were 71 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.