The value of Burnham Market leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than eighty years
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| 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 |
Lease extensions in Burnham Market can be a difficult process. We recommend you get guidance from a conveyancer 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 Burnham Market lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Jack, came very near to the 80-year mark with the lease on his one bedroom apartment in Burnham Market. Having purchased his home two decades ago, the unexpired term was of minimal importance. Fortunately, he realised he would soon be paying an escalated premium for Extending the lease. Jack arranged for a lease extension just under the wire last March. Jack and the freeholder in the end settled on a premium of £5,500 . If the lease had fallen below 80 years, the price would have become more exhorbitant by at least £850.
Last Christmas we were e-mailed by Mr and Mrs. M Flores , who owned a studio apartment in Burnham Market in March 2002. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Burnham Market with 100 year plus lease were valued about £218,000. The average ground rent payable was £45 collected quarterly. The lease expiry date was on 9 April 2088. Given that there were 63 years left we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including professional charges.
Last Autumn we were e-mailed by Dr Lauren Ricardo , who completed a purpose-built flat in Burnham Market in September 2005. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable homes in Burnham Market with a long lease were valued about £265,000. The average ground rent payable was £50 collected annually. The lease concluded in 2099. Given that there were 74 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.