When it comes to residential leasehold property in Burntwood, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years remaining. Residents in Burntwood with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has fewer than eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank |
Retaining our service gives you better 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 lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the landlord of her studio apartment in Burntwood, Melissa started the lease extension process just as her lease was nearing the crucial eighty-year threshold. The transaction was concluded in November 2014. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Mr and Mrs. E David who, having bought a newly refurbished apartment in Burntwood in July 2007. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable homes in Burntwood with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded in 2098. Having 72 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.
Ms J Smith owned a garden flat in Burntwood in August 1996. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar properties in Burntwood with a long lease were valued about £233,200. The mid-range amount of ground rent was £60 collected monthly. The lease finished in 2087. Considering the 61 years unexpired we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including professional charges.