Burnham On Crouch leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Burnham On Crouch residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Burnham On Crouch you would be well advised to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Burnham On Crouch with in excess of 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
The lawyers 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 conveyancing solicitor we work with provide it.
After protracted negotiations with the freeholder of her one bedroom flat in Burnham On Crouch, Chelsea commenced the lease extension process as the 80 year threshold was quickly advancing. The legal work completed in June 2010. The freeholder’s charges were restricted to a tad over 700 GBP.
In 2013 we were called by Mr and Mrs. G Lewis who, having acquired a one bedroom flat in Burnham On Crouch in June 2004. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar premises in Burnham On Crouch with 100 year plus lease were worth £176,200. The mid-range amount of ground rent was £65 collected yearly. The lease concluded in 2082. Taking into account 56 years outstanding we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 plus expenses.
Last year we were e-mailed by Dr Oscar François , who acquired a newly refurbished flat in Burnham On Crouch in February 1998. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative properties in Burnham On Crouch with a long lease were worth £237,600. The mid-range amount of ground rent was £45 invoiced annually. The lease terminated on 22 April 2093. Taking into account 67 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including expenses.