Unfortunately that a Burton Joyce residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Burton Joyce property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Burton Joyce will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Burton Joyce with more than 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Burton Joyce lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Two years ago Luke, came critically near to the eighty-year mark with the lease on his two bedroom apartment in Burton Joyce. Having purchased his property two decades ago, the unexpired term was of minimal interest. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Luke was able to extend his lease just under the wire in April. Luke and the landlord eventually settled on a premium of £6,000 . If the lease had slid below eighty years, the premium would have escalated by a minimum £1,100.
In 2009 we were contacted by Mr and Mrs. G Cook who, having purchased a garden flat in Burton Joyce in February 2007. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar homes in Burton Joyce with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected monthly. The lease terminated on 17 May 2084. Considering the 58 years outstanding we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
In 2009 we were phoned by Dr Harrison Carter who, having purchased a one bedroom flat in Burton Joyce in June 2004. The question was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar premises in Burton Joyce with a long lease were valued about £205,000. The average ground rent payable was £50 collected yearly. The lease terminated in 2104. Considering the 78 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.