For anyone whose Burnham home is held on a long lease, the message is clear – if you ignore the situation, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
Regardless of whether you are a tenant or a landlord in Burnham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Burnham valuers.
After lengthy discussions with the freeholder of her ground floor apartment in Burnham, Ellen started the lease extension process as the eighty year threshold was swiftly coming. The lease extension was finalised in May 2006. The freeholder’s fees were negotiated to under 700 pounds.
Mrs Amy Rose completed a studio flat in Burnham in March 2001. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Similar flats in Burnham with a long lease were valued about £300,000. The average amount of ground rent was £50 collected annually. The lease terminated in 2101. Considering the 76 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
In 2013 we were approached by Mr Austin David who, having acquired a one bedroom flat in Burnham in March 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative premises in Burnham with a long lease were in the region of £252,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed in 2090. Having 65 years as a residual term we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including professional charges.