Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Burnham On Crouch. Clearly, the term of lease left shortens as time goes by. This is often ignored and only becomes a problem when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Burnham On Crouch have the right to extend the lease for a further 90 years under statute. You should give due consideration before putting off your Burnham On Crouch lease extension. Putting off that expense now only increases the price you will ultimately incur to extend your lease
Leasehold properties in Burnham On Crouch with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 On Crouch can be a difficult process. We recommend you obtain professional help from a lawyer 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 in-depth market knowledge dealing with Burnham On Crouch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Ibrahim, came seriously close to the eighty-year threshold with the lease on his garden flat in Burnham On Crouch. Having purchased his property twenty years ago, the lease term was of no relevance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Ibrahim arranged for a lease extension just under the wire last July. Ibrahim and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If the lease had descended below eighty years, the sum would have increased by at least £1,000.
Last Summer we were called by Mr H Johnson , who bought a studio flat in Burnham On Crouch in May 2003. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Burnham On Crouch with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease end date was in 2087. Considering the 61 years left we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including fees.
In 2013 we were called by Dr F Ali who, having moved into a one bedroom flat in Burnham On Crouch in March 1996. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Burnham On Crouch with 100 year plus lease were valued about £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ended on 23 July 2098. Considering the 72 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.