The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Burnham may extend the lease for a further ninety years under legislation. Please think carefully before delaying your Burnham lease extension. Shelving the costs now simply increases the amount you will eventually be required to pay for a lease extension.
Leasehold residencies in Burnham with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Using our service will provide you better control over the value of your Burnham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ben was the the leasehold proprietor of a high value flat in Burnham being sold with a lease of fraction over fifty eight years unexpired. Ben on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2009 we were phoned by Dr Evan Roux who, having moved into a one bedroom flat in Burnham in October 2005. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical premises in Burnham with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 collected monthly. The lease ran out on 19 October 2089. Having 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus fees.
In 2009 we were approached by Mr and Mrs. L Simon who, having moved into a purpose-built flat in Burnham in March 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Burnham with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed on 12 November 2078. Considering the 52 years outstanding we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.