The closer a domestic lease in Burntwood gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner than later. Many flat owners in Burntwood will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Burntwood with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Engaging our service gives you increased control over the value of your Burntwood leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Aiden, started to get close to the eighty-year mark with the lease on his purpose- built flat in Burntwood. In buying his home two decades ago, the unexpired term was of little importance. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Aiden extended the lease just ahead of time last July. Aiden and the freeholder via the management company in the end settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have increased by a minimum £1,050.
Last Summer we were approach by Mr and Mrs. V Reed , who acquired a purpose-built apartment in Burntwood in July 1995. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparable premises in Burntwood with an extended lease were valued around £257,800. The mid-range ground rent payable was £65 billed monthly. The lease ended in 2091. Considering the 65 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of fees.
Dr Toby Bonnet purchased a basement flat in Burntwood in June 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative homes in Burntwood with a long lease were in the region of £191,400. The average amount of ground rent was £55 invoiced yearly. The lease termination date was on 26 August 2080. Given that there were 54 years remaining we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 not including fees.