With a long leasehold property in Burnopfield, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in Burnopfield with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has fewer than eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Burnopfield with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Burnopfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Sam owned a 2 bedroom apartment in Burnopfield being sold with a lease of just over fifty eight years left. Sam on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Sam to invoke his statutory right. Sam obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr B Martinez moved into a garden flat in Burnopfield in August 2012. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative flats in Burnopfield with a long lease were worth £260,200. The mid-range ground rent payable was £65 collected monthly. The lease ran out on 5 November 2092. Given that there were 66 years remaining we calculated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including costs.
Last Winter we were contacted by Mr and Mrs. I Nelson , who bought a garden flat in Burnopfield in March 2005. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar premises in Burnopfield with 100 year plus lease were valued about £198,800. The mid-range amount of ground rent was £55 collected annually. The lease ended in 2081. Given that there were 55 years unexpired we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of legals.