There is no doubt about it a leasehold flat or house in Burnham is a wasting asset as a result of the shortening lease. Where the residual term has, more than 99 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Burnham will meet the qualifying criteria; nevertheless a lawyer can advise if you are eligible to extend your lease. In certain 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 considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Burnham can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 a wealth of experience dealing with Burnham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Felix, started to get close to the eighty-year threshold with the lease on his garden apartment in Burnham. In buying his property 19 years ago, the unexpired term was of little bearing. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Felix arranged for a lease extension just ahead of time in March. Felix and the landlord subsequently settled on sum of £5,500 . If he had missed the deadline, the price would have escalated by at least £925.
In 2014 we were approached by Mr and Mrs. K White who, having acquired a garden apartment in Burnham in September 2004. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable premises in Burnham with a long lease were worth £218,400. The average ground rent payable was £60 invoiced every twelve months. The lease ran out on 7 February 2085. Having 59 years left we approximated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 not including expenses.
In 2010 we were approached by Mr and Mrs. W Moore who, having was assigned a lease of a ground floor flat in Burnham in April 1997. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative properties in Burnham with an extended lease were worth £205,000. The mid-range ground rent payable was £50 billed per annum. The lease finished in 2105. Given that there were 79 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.