Burnt Oak leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Burnt Oak will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
Regardless of whether you are a tenant or a freeholder in Burnt Oak,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Burnt Oak valuers.
In recent months Ethan, came perilously near to the 80-year threshold with the lease on his purpose- built apartment in Burnt Oak. Having bought his property two decades ago, the unexpired term was of little concern. Luckily, he noticed he needed to take action soon on a lease extension. Ethan was able to extend his lease at the eleventh hour in April. Ethan and the landlord subsequently settled on the final figure of £5,500 . If the lease had gone to less than eighty years, the price would have become more exhorbitant by a minimum £1,050.
Last Christmas we were e-mailed by Mr and Mrs. S Rivera , who was assigned a lease of a one bedroom apartment in Burnt Oak in October 1999. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable properties in Burnt Oak with a long lease were worth £235,600. The average ground rent payable was £60 collected every twelve months. The lease concluded on 9 August 2087. Having 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including costs.
An example of a Lease Extension decision for a Burnt Oak premises 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 was in relation to 1 flat. The unexpired residue of the current lease was 71.55 years.