Burton Bradstock leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Burton Bradstock will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Burton Bradstock with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Yorkshire 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. |
Lease extensions in Burton Bradstock can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Burton Bradstock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the landlord of her basement apartment in Burton Bradstock, Isabel started the lease extension process as the 80 year mark was swiftly coming. The transaction completed in February 2008. The landlord’s charges were restricted to less than 450 GBP.
In 2013 we were approached by Ms I Lefèvre who, having took over the lease of a basement apartment in Burton Bradstock in May 1999. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in Burton Bradstock with an extended lease were worth £183,600. The average amount of ground rent was £65 collected yearly. The lease concluded on 20 February 2082. Given that there were 57 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.
In 2010 we were e-mailed by Mr and Mrs. N Morel who, having took over the lease of a studio apartment in Burton Bradstock in May 2000. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative flats in Burton Bradstock with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 billed annually. The lease concluded in 2093. Given that there were 68 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.