Burnt Oak Lease Extension - Free Consultation

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Top reasons for Burnt Oak lease extension


Main reasons to commence your Burnt Oak lease extension today:

Increase your lease and increase your Burnt Oak property value

For anyone whose Burnt Oak home is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not issue a mortgage on a short lease

Lending institutions have specific criteria when loaning monies secured on leasehold property. Some will simply refrain from lending at all once the residual lease term slips under a specified unexpired lease term. Many Mortgage lenders will not regard property with a remaining term of less than seventy years as acceptable security. As well as this being important when selling, it is also relevant if you are wanting to refinance your Burnt Oak property.

Lender Requirement
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.
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
Royal Bank of Scotland Mortgage term plus 30 years.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
Yorkshire 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.

Get in touch with one of our Burnt Oak lease extension solicitors or enfranchisement solicitors

The lawyers that we work with handle Burnt Oak 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 conveyancing solicitor we work with provide it.

Burnt Oak Lease Extension Example Cases:

Jayden, Burnt Oak, North London

Last Christmas Jayden, came very close to the eighty-year mark with the lease on his studio flat in Burnt Oak. Having purchased his property 19 years ago, the length of the lease was of no significance. As luck would have it, he realised he would soon be paying an escalated premium for Extending the lease. Jayden extended the lease at the eleventh hour in June. Jayden and the freeholder subsequently agreed on an amount of £6,000 . If the lease had slipped to less than eighty years, the amount would have increased by at least £1,125.

Burnt Oak case:

Last Christmas we were phoned by Mr and Mrs. R Williams , who purchased a purpose-built flat in Burnt Oak in July 2012. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Burnt Oak with an extended lease were worth £290,000. The average ground rent payable was £45 invoiced quarterly. The lease terminated on 22 May 2098. Having 73 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.

Decision in Harrow

An example of a Lease Extension decision for a Burnt Oak flat is 20 Orchard Court Stonegrove in June 2009. The tribunal decided that a premium of £11,040 should be payable for the new lease This case related to 1 flat. The unexpired term as at the valuation date was 71.55 years.