Burnham On Crouch leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Burnham On Crouch will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Burnham On Crouch with in excess of 100 years unexpired 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 upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Burnham On Crouch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After protracted negotiations with the freeholder of her ground floor flat in Burnham On Crouch, Imogen started the lease extension process as the 80 year threshold was rapidly advancing. The legal work was concluded in March 2013. The landlord’s fees were negotiated to a tad over 550 pounds.
In 2011 we were approached by Mrs Katie Lefèvre who, having purchased a one bedroom apartment in Burnham On Crouch in August 2009. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar residencies in Burnham On Crouch with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 billed monthly. The lease elapsed in 2101. Having 75 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
In 2012 we were called by Ms L Carter who, having acquired a recently refurbished apartment in Burnham On Crouch in February 2000. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable premises in Burnham On Crouch with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 invoiced every twelve months. The lease finished in 2080. Taking into account 54 years as a residual term we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including professional charges.