With a residential leasehold property in Burton Joyce, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Residents in Burton Joyce with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once a lease has under 80 years left, under the relevant statute the freeholder can calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Burton Joyce leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Hunter, came precariously close to the eighty-year threshold with the lease on his leasehold apartment in Burton Joyce. In buying his property two decades ago, the unexpired term was of minimal importance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Hunter was able to extend his lease just in the nick of time last September. Hunter and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If the lease had descended below eighty years, the price would have escalated by a minimum £1,150.
Last month we were e-mailed by Ms Katherine Evans , who bought a first floor flat in Burton Joyce in April 2003. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparative premises in Burton Joyce with a long lease were in the region of £174,200. The mid-range ground rent payable was £55 collected annually. The lease concluded on 11 October 2077. Considering the 51 years as a residual term we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.
In 2011 we were e-mailed by Mr and Mrs. I Allen who, having purchased a one bedroom apartment in Burton Joyce in October 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Similar premises in Burton Joyce with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 invoiced per annum. The lease termination date was on 26 July 2097. Considering the 71 years unexpired we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.