When it comes to domestic leasehold premises in Burnopfield, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years left. Residents in Burnopfield with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has less than 80 years outstanding, under the current statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Engaging our service gives you increased control over the value of your Burnopfield leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the landlord of her first floor apartment in Burnopfield, Alisha commenced the lease extension process as the 80 year threshold was rapidly advancing. The lease extension was finalised in September 2005. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. N Reed owned a garden flat in Burnopfield in July 2010. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative premises in Burnopfield with an extended lease were worth £210,000. The average amount of ground rent was £50 invoiced monthly. The lease ran out on 22 November 2105. Given that there were 80 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
In 2010 we were phoned by Mrs F Gómez who, having completed a garden apartment in Burnopfield in May 1995. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar flats in Burnopfield with a long lease were valued about £275,000. The average ground rent payable was £45 invoiced per annum. The lease ended in 2094. Given that there were 69 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.