The nearer a residential lease in Burnham On Sea nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be negligible however there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Most flat owners in Burnham On Sea will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Burnham On Sea leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her first floor flat in Burnham On Sea, Francesca initiated the lease extension process just as the lease was approaching the crucial eighty-year mark. The lease extension was finalised in September 2012. The landlord’s charges were kept to an absolute minimum.
In 2013 we were approached by Mr and Mrs. G Lewis who, having was assigned a lease of a ground floor apartment in Burnham On Sea in February 1999. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative properties in Burnham On Sea with a long lease were worth £176,200. The average ground rent payable was £65 billed per annum. The lease end date was in 2081. Having 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 not including expenses.
Dr Liam Anderson completed a one bedroom flat in Burnham On Sea in August 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar residencies in Burnham On Sea with a long lease were valued around £237,600. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed in 2092. Considering the 67 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus fees.