Burnham On Sea leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Burnham On Sea enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Burnham On Sea you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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; |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Burnham On Sea can be a difficult process. We recommend you obtain guidance from a lawyer 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 in-depth market knowledge dealing with Burnham On Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the freeholder of her first floor flat in Burnham On Sea, Lauren initiated the lease extension process just as her lease was approaching the crucial eighty-year threshold. The transaction was finalised in July 2014. The landlord’s fees were restricted to approximately 450 GBP.
Ms I Reed moved into a studio flat in Burnham On Sea in March 2009. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable premises in Burnham On Sea with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease expiry date was on 27 May 2100. Having 75 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Dr Sarah Cook purchased a purpose-built apartment in Burnham On Sea in October 1999. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar premises in Burnham On Sea with a long lease were in the region of £168,800. The mid-range ground rent payable was £60 invoiced annually. The lease termination date was in 2080. Considering the 55 years remaining we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including costs.