Burnt Oak Lease Extension - Free Consultation

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Why you should start your Burnt Oak lease extension


Top reasons for lease extension now:

A Burnt Oak lease depreciates with the years remaining on the lease.

Burnt Oak leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Burnt Oak will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Lending institutions will not loan monies on a short lease

Lenders are really clamping down as regards to properties in Burnt Oak with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus restricting your market.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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.
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.
National Westminster Bank Mortgage term plus 30 years.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

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

Retaining our service gives you better control over the value of your Burnt Oak leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Burnt Oak Lease Extension Case Studies:

Thomas, Burnt Oak, North London

Last Autumn Thomas, came very near to the eighty-year threshold with the lease on his purpose- built apartment in Burnt Oak. Having bought his property two decades ago, the length of the lease was of minimal concern. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Thomas was able to extend his lease at the eleventh hour last January. Thomas and the landlord subsequently agreed on sum of £5,000 . If the lease had descended to less than eighty years, the premium would have increased by a minimum £975.

Burnt Oak case:

In 2011 we were phoned by Dr U Nelson who, having owned a purpose-built flat in Burnt Oak in July 2001. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable residencies in Burnt Oak with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded in 2076. Considering the 52 years remaining we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.

Decision in Harrow

An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The number of years remaining on the existing lease(s) was 71.55 years.