Unfortunately that a Burton Latimer residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Burton Latimer property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining falls below eighty years, you will end up paying 50% 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 The majority of flat owners in Burton Latimer will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold properties in Burton Latimer with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you increased control over the value of your Burton Latimer leasehold, as your property will be more valuable and marketable in terms of lease length should you want 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 year Milo, came very close to the eighty-year mark with the lease on his purpose- built apartment in Burton Latimer. In buying his home 19 years previously, the unexpired term was of minimal importance. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Milo arranged for a lease extension just in the nick of time last May. Milo and the freeholder ultimately settled on an amount of £5,500 . If he not met the deadline, the premium would have escalated by a minimum £925.
Last Summer we were contacted by Mr and Mrs. A White , who took over the lease of a studio apartment in Burton Latimer in July 2006. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Similar premises in Burton Latimer with a long lease were worth £235,200. The mid-range amount of ground rent was £45 collected per annum. The lease ended on 25 November 2091. Considering the 66 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.
Dr P Martinez moved into a studio flat in Burton Latimer in April 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Burton Latimer with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease concluded on 25 August 2102. Taking into account 77 years as a residual term we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.