Burnham On Crouch leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Burnham On Crouch will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some situations you may not be entitled. There are also strict timetables and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Burnham On Crouch leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Connor, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Burnham On Crouch. In buying his home 18 years previously, the length of the lease was of minimal relevance. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Connor extended the lease just under the wire last August. Connor and the freeholder via the managing agents subsequently agreed on an amount of £5,500 . If the lease had dropped to less than 80 years, the amount would have become more exhorbitant by a minimum £975.
Last June we were contacted by Dr Adam Patel , who bought a newly refurbished apartment in Burnham On Crouch in April 2004. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Similar properties in Burnham On Crouch with 100 year plus lease were worth £246,800. The mid-range ground rent payable was £60 collected quarterly. The lease expired in 2075. Having 50 years left we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 not including costs.
Mr and Mrs. Y Phillips purchased a one bedroom flat in Burnham On Crouch in February 2001. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical premises in Burnham On Crouch with 100 year plus lease were valued around £203,200. The average amount of ground rent was £65 billed per annum. The lease terminated in 2086. Having 61 years remaining we estimated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus costs.