When it comes to domestic leasehold premises in Burnopfield, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Residents in Burnopfield with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has below 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Burnopfield can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
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 Burnopfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Kai, came dangerously near to the eighty-year threshold with the lease on his studio apartment in Burnopfield. In buying his flat two decades ago, the unexpired term was of minimal relevance. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Kai was able to extend his lease at the eleventh hour in August. Kai and the freeholder via the managing agents eventually settled on a premium of £5,000 . If the lease had slid below eighty years, the figure would have increased by a minimum £975.
In 2014 we were approached by Dr Natasha Ramírez who, having took over the lease of a garden flat in Burnopfield in January 2012. The question was if we could approximate the price would be for a 90 year lease extension. Identical residencies in Burnopfield with an extended lease were valued around £223,400. The average amount of ground rent was £60 billed yearly. The lease elapsed in 2085. Taking into account 59 years outstanding we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of professional charges.
Last year we were contacted by Mrs Aimee Sánchez , who acquired a garden flat in Burnopfield in April 2000. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable flats in Burnopfield with an extended lease were in the region of £205,000. The average ground rent payable was £50 invoiced quarterly. The lease concluded on 21 August 2105. Taking into account 79 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.