On the balance of probabilities where you own a flat in Burnham On Crouch you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property 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. |
| Birmingham Midshires | 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. |
| 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 |
| 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. |
The lawyers 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 lawyer we work with provide it.
Two years ago Luke, started to get close to the eighty-year threshold with the lease on his basement flat in Burnham On Crouch. Having purchased his home 19 years ago, the length of the lease was of no interest. Luckily, he noticed he would imminently be paying way over the odds for a lease extension. Luke was able to extend his lease just in the nick of time last March. Luke and the landlord eventually agreed on a premium of £6,000 . If the lease had slipped to less than 80 years, the amount would have gone up by at least £975.
Dr Seth Smith acquired a garden apartment in Burnham On Crouch in July 2012. The question 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 a long lease were worth £215,600. The mid-range amount of ground rent was £45 billed per annum. The lease end date was on 25 July 2088. Having 62 years as a residual term we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus legals.
Last Winter we were e-mailed by Ms P Jones , who bought a purpose-built apartment in Burnham On Crouch in March 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Burnham On Crouch with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 collected annually. The lease lapsed in 2099. Taking into account 73 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.