Burnham On Sea leases on residential deteriorating in value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Burnham On Sea will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Burnham On Sea with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| 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 Sea,the lease extension experts that we work with will always be happy 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 Sea valuers.
After unsuccessful negotiations with the freeholder of her first floor apartment in Burnham On Sea, Kayleigh commenced the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The lease extension completed in July 2009. The landlord’s charges were restricted to a tad over 500 pounds.
Last year we were contacted by Dr Blake Gómez , who purchased a garden apartment in Burnham On Sea in February 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Burnham On Sea with a long lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease came to a finish on 10 June 2104. Considering the 78 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.
Mr and Mrs. D Mason completed a basement apartment in Burnham On Sea in November 1997. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparative homes in Burnham On Sea with 100 year plus lease were in the region of £186,000. The mid-range ground rent payable was £65 invoiced monthly. The lease concluded in 2084. Considering the 58 years remaining we estimated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 plus expenses.