Burslem 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 the lease becomes more expensive. Most owners of residential leasehold property in Burslem enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Burslem you should see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Burslem with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
Using our service will provide you increased control over the value of your Burslem leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
David was the the leasehold owner of a conversion flat in Burslem being marketed with a lease of a few days over fifty eight years left. David informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were David to invoke his statutory right. David obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
Last Autumn we were e-mailed by Mr and Mrs. L Martínez , who moved into a first floor flat in Burslem in July 1995. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar flats in Burslem with 100 year plus lease were valued about £227,800. The mid-range amount of ground rent was £45 billed per annum. The lease finished in 2090. Taking into account 65 years unexpired we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.
Dr U Alexander purchased a studio apartment in Burslem in October 2008. We are asked if we could approximate the price could be to prolong the lease by ninety years. Similar residencies in Burslem with an extended lease were worth £275,000. The average ground rent payable was £55 billed annually. The lease expiry date was on 25 February 2101. Taking into account 76 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.