Burntwood leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Burntwood will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Burntwood with in excess of 100 years outstanding 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 upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you enhanced control over the value of your Burntwood leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Lewis owned a studio flat in Burntwood on the market with a lease of a little over 61 years unexpired. Lewis informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Dr B Norbert took over the lease of a basement flat in Burntwood in July 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable flats in Burntwood with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 collected monthly. The lease ran out on 15 September 2095. Having 70 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
In 2013 we were e-mailed by Ms Katie Rodríguez who, having owned a purpose-built apartment in Burntwood in June 2001. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable premises in Burntwood with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 invoiced monthly. The lease expired on 14 April 2084. Given that there were 59 years remaining we approximated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus legals.