With a domestic leasehold premises in Burnham Market, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Anyone in Burnham Market with a lease approaching 81 years left should seriously think of extending it without delay. Once the lease term has fewer than 80 years remaining, under the relevant legislation the landlord can calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Burnham Market with in excess of 100 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date 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 |
| 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. |
Lease extensions in Burnham Market can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 procuring 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.
Trailing lengthy discussions with the freeholder of her basement apartment in Burnham Market, Isabelle started the lease extension process as the 80 year mark was fast coming. The transaction was finalised in March 2014. The landlord’s costs were kept to an absolute minimum.
Last Summer we were e-mailed by Dr Bethany Brooks , who owned a basement apartment in Burnham Market in February 2000. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparative residencies in Burnham Market with an extended lease were valued around £176,200. The mid-range amount of ground rent was £65 collected yearly. The lease finished in 2081. Having 56 years left we calculated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of costs.
Last Autumn we were called by Mr and Mrs. O Garcia , who bought a purpose-built apartment in Burnham Market in June 2001. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Burnham Market with a long lease were in the region of £237,600. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed on 19 August 2092. Having 67 years left we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus professional charges.