Burnham Market leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Burnham Market will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Burnham Market with over one hundred years unexpired on the lease are sometimes referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Burnham Market,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Burnham Market valuers.
After unsuccessful discussions with the landlord of her studio flat in Burnham Market, Bethan started the lease extension process just as the lease was coming close to the crucial 80-year mark. The lease extension was finalised in October 2014. The landlord’s charges were restricted to a tad over 650 GBP.
Last Spring we were called by Dr H Bell , who completed a studio apartment in Burnham Market in January 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Burnham Market with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease came to a finish on 15 May 2096. Considering the 70 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
In 2014 we were approached by Mr and Mrs. M Kelly who, having owned a one bedroom apartment in Burnham Market in April 2009. The dilemma was if we could estimate the price would be for a 90 year lease extension. Similar homes in Burnham Market with a long lease were worth £290,000. The mid-range amount of ground rent was £60 invoiced annually. The lease lapsed in 2106. Taking into account 80 years left we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.