With a long leasehold property in Burnt Oak, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Anyone in Burnt Oak with a lease approaching 81 years remaining should seriously think of extending it sooner as opposed to later. Once the lease term has below eighty years remaining, under the current statute the landlord can calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Burnt Oak with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
David was the the leasehold owner of a conversion apartment in Burnt Oak on the market with a lease of fraction over 59 years remaining. David informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were David to invoke his statutory right. David procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2009 we were approached by Mr Hugo Brown who, having owned a one bedroom flat in Burnt Oak in August 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative residencies in Burnt Oak with a long lease were valued around £260,200. The mid-range ground rent payable was £65 invoiced monthly. The lease finished in 2091. Given that there were 66 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 plus legals.
An example of a Lease Extension decision for a Burnt Oak property 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 was 71.55 years.