With a domestic leasehold premises in Burnham On Crouch, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years remaining. Leasehold owners in Burnham On Crouch with a lease approaching 81 years left should seriously think of extending it sooner than later. When a lease has less than 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake 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.
Subsequent to lengthy discussions with the landlord of her leasehold flat in Burnham On Crouch, Isabelle started the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension was finalised in October 2005. The landlord’s costs were restricted to below 500 GBP.
Mr and Mrs. F Bailey moved into a garden apartment in Burnham On Crouch in February 2006. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Burnham On Crouch with 100 year plus lease were in the region of £203,200. The average ground rent payable was £65 collected yearly. The lease terminated on 6 May 2086. Given that there were 61 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus legals.
Last Spring we were called by Mr and Mrs. V López , who was assigned a lease of a studio flat in Burnham On Crouch in February 2010. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Burnham On Crouch with 100 year plus lease were valued about £260,000. The average amount of ground rent was £50 billed per annum. The lease came to a finish in 2097. Considering the 72 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.