Burton Latimer leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Burton Latimer enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Burton Latimer you should investigate if your lease has between 70 and 90 years left. There are good reasons why a Burton Latimer leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Burton Latimer with more than 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Burton Latimer,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Burton Latimer valuers.
Following lengthy negotiations with the freeholder of her two bedroom flat in Burton Latimer, Louise commenced the lease extension process as the eighty year mark was rapidly coming. The legal work was concluded in March 2010. The freeholder’s charges were restricted to less than 700 GBP.
Mr D Williams bought a studio flat in Burton Latimer in September 2009. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar flats in Burton Latimer with a long lease were in the region of £275,000. The average ground rent payable was £55 collected annually. The lease elapsed on 9 April 2102. Considering the 76 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last April we were e-mailed by Mr and Mrs. E Parker , who bought a basement apartment in Burton Latimer in October 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Burton Latimer with 100 year plus lease were valued about £176,200. The mid-range ground rent payable was £65 billed yearly. The lease elapsed on 1 July 2082. Considering the 56 years remaining we approximated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 plus legals.