Burnt Oak leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Burnt Oak residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Burnt Oak you really ought to check if your lease has between seventy and ninety years left. There are compelling reasons why a Burnt Oak leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Burnt Oak can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Burnt Oak lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Isaac, started to get near to the 80-year mark with the lease on his studio apartment in Burnt Oak. In buying his flat two decades ago, the length of the lease was of little interest. Thankfully, he realised he would imminently be paying way over the odds for Extending the lease. Isaac was able to extend his lease just ahead of time last July. Isaac and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the amount would have escalated by at least £1,150.
Last Summer we were contacted by Ms W Moreau , who acquired a one bedroom apartment in Burnt Oak in February 2007. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative properties in Burnt Oak with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease finished on 3 January 2083. Taking into account 58 years left we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including fees.
An example of a Lease Extension matter before the tribunal 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 residue of the current lease was 71.55 years.