With a domestic leasehold premises in Burnham On Crouch, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Anyone in Burnham On Crouch with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. When a lease has below eighty years left, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Burnham On Crouch with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Burnham On Crouch,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Burnham On Crouch valuers.
Last Autumn Oliver, came precariously close to the 80-year mark with the lease on his one bedroom apartment in Burnham On Crouch. In buying his flat 19 years previously, the lease term was of minimal concern. Fortunately, it dawned on him that he would soon be paying an inflated amount for a lease extension. Oliver extended the lease just in the nick of time in June. Oliver and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If he had missed the deadline, the figure would have escalated by a minimum £1,125.
Last Autumn we were phoned by Mr and Mrs. Y Murphy , who took over the lease of a one bedroom apartment in Burnham On Crouch in March 1996. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative homes in Burnham On Crouch with an extended lease were worth £285,000. The mid-range ground rent payable was £55 collected every twelve months. The lease termination date was on 26 November 2104. Considering the 79 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
Last month we were phoned by Ms L Mercier , who was assigned a lease of a newly refurbished apartment in Burnham On Crouch in March 2008. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable homes in Burnham On Crouch with 100 year plus lease were in the region of £193,400. The mid-range amount of ground rent was £65 collected annually. The lease finished in 2084. Having 59 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.