It’s an underpublicised certainty that a Burnopfield residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Burnopfield property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Burnopfield will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Burnopfield can be a difficult process. We recommend you procure guidance from a conveyancer 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 in-depth market knowledge procuring Burnopfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the freeholder of her one bedroom apartment in Burnopfield, Molly initiated the lease extension process as the eighty year deadline was fast coming. The legal work was finalised in September 2009. The landlord’s costs were kept to an absolute minimum.
In 2011 we were phoned by Mr and Mrs. N Ward who, having owned a one bedroom apartment in Burnopfield in April 2012. 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. Comparative properties in Burnopfield with an extended lease were worth £233,200. The average amount of ground rent was £60 billed every twelve months. The lease came to a finish on 14 May 2086. Having 61 years remaining we calculated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 not including expenses.
Ms Y Baker purchased a basement apartment in Burnopfield in September 2011. We are asked if we could approximate the price could be for a 90 year lease extension. Identical homes in Burnopfield with 100 year plus lease were in the region of £166,800. The average amount of ground rent was £55 invoiced per annum. The lease finished on 26 January 2075. Taking into account 50 years outstanding we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including legals.