Burnt Oak leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Burnt Oak will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Burnt Oak with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Regardless of whether you are a tenant or a landlord in Burnt Oak,the lease extension experts that we work with will always be happy 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.
Trailing unsuccessful discussions with the landlord of her one bedroom flat in Burnt Oak, Elizabeth started the lease extension process just as her lease was approaching the all-important 80-year mark. The transaction was concluded in September 2008. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were e-mailed by Mr and Mrs. V Girard , who bought a studio flat in Burnt Oak in May 2011. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparative flats in Burnt Oak with a long lease were worth £184,000. The mid-range ground rent payable was £55 collected monthly. The lease expiry date was on 1 June 2079. Given that there were 53 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.
An example of a Lease Extension decision for a Burnt Oak residence 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 affected 1 flat. The unexpired term was 71.55 years.