Unfortunately that a Burnham On Crouch residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Burnham On Crouch property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Most flat owners in Burnham On Crouch will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Burnham On Crouch leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful negotiations with the freeholder of her first floor flat in Burnham On Crouch, Rebecca started the lease extension process as the eighty year mark was rapidly advancing. The transaction completed in January 2013. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were called by Mr and Mrs. S Jackson who, having owned a ground floor apartment in Burnham On Crouch in July 2007. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar flats in Burnham On Crouch with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced annually. The lease lapsed in 2097. Having 71 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
Mr and Mrs. Y Young was assigned a lease of a studio flat in Burnham On Crouch in October 1995. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable flats in Burnham On Crouch with 100 year plus lease were valued around £246,800. The average ground rent payable was £60 collected yearly. The lease expiry date was on 11 August 2076. Taking into account 50 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of costs.