Chances are that if you own a flat in Burnham On Sea you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Burnham On Sea 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.
18 months ago Jamie, started to get near to the eighty-year threshold with the lease on his first floor apartment in Burnham On Sea. In buying his property 19 years previously, the length of the lease was of little bearing. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Jamie extended the lease just under the wire last January. Jamie and the landlord in the end agreed on a premium of £5,000 . If the lease had slipped lower than 80 years, the premium would have gone up by a minimum £1,050.
Dr P Díaz bought a first floor flat in Burnham On Sea in April 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparative homes in Burnham On Sea with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ran out in 2093. Considering the 68 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
Last month we were phoned by Dr Hugo Fournier , who took over the lease of a garden flat in Burnham On Sea in June 1995. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Identical residencies in Burnham On Sea with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 collected quarterly. The lease terminated in 2104. Given that there were 79 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.