There is no doubt about it a leasehold flat or house in Burscough is a wasting asset as a result of the shortening lease. Where the lease has, in excess of one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Burscough will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| 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 will provide you better control over the value of your Burscough leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Tyler, started to get near to the eighty-year mark with the lease on his first floor flat in Burscough. In buying his home twenty years ago, the lease term was of little interest. Fortunately, he recognised he would imminently be paying an escalated premium for a lease extension. Tyler arranged for a lease extension just ahead of time in March. Tyler and the landlord ultimately settled on the final figure of £6,000 . If the lease had descended lower than 80 years, the sum would have gone up by at least £950.
In 2014 we were phoned by Mrs Sophie Kelly who, having moved into a one bedroom apartment in Burscough in May 2003. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Identical homes in Burscough with 100 year plus lease were valued about £166,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease ended in 2080. Taking into account 54 years remaining we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including costs.
Ms Shannon Reed moved into a purpose-built flat in Burscough in June 2006. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Burscough with 100 year plus lease were in the region of £227,800. The average amount of ground rent was £45 invoiced per annum. The lease came to a finish on 2 October 2091. Given that there were 65 years remaining we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.