It’s an underpublicised certainty that a Burnham On Crouch residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Burnham On Crouch property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Burnham On Crouch will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Burnham On Crouch can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Joshua was the the leasehold owner of a high value apartment in Burnham On Crouch on the market with a lease of a few days over 61 years unexpired. Joshua informally approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert advice and secured an acceptable resolution informally and readily saleable.
Last February we were called by Mrs Chloe Michel , who owned a one bedroom apartment in Burnham On Crouch in November 2007. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Burnham On Crouch with a long lease were in the region of £235,200. The average ground rent payable was £45 invoiced annually. The lease ran out in 2091. Considering the 66 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.
Mr and Mrs. F Edwards owned a newly refurbished apartment in Burnham On Crouch in September 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical flats in Burnham On Crouch with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease terminated on 24 July 2102. Having 77 years remaining we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.