With a domestic leasehold property in Burnt Oak, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years 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 think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Residents in Burnt Oak with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once the lease term has under 80 years left, under the current legislation the landlord is entitled to calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Burnt Oak leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Benjamin, started to get close to the eighty-year mark with the lease on his ground floor apartment in Burnt Oak. In buying his property two decades ago, the lease term was of no concern. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Benjamin was able to extend his lease just in the nick of time in May. Benjamin and the landlord in the end settled on a premium of £6,000 . If the lease had dipped below eighty years, the amount would have gone up by at least £1,125.
Ms Harriet Hill was assigned a lease of a recently refurbished flat in Burnt Oak in August 2004. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar flats in Burnt Oak with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 collected every twelve months. The lease elapsed on 1 February 2095. Considering the 70 years unexpired we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.
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 remaining number of years on the lease was 71.55 years.