It’s an underpublicised certainty that a Burton upon Stather residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Burton upon Stather property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term drops under 80 years, you will end up paying half of the property's 'marriage value' in addition to 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 leasehold owners in Burton upon Stather will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Burton upon Stather with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Burton upon Stather,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 in-depth market knowledge and the close ties they enjoy with Burton upon Stather valuers.
Off the back of protracted discussions with the landlord of her studio apartment in Burton upon Stather, Bethan started the lease extension process as the eighty year deadline was quickly approaching. The lease extension was finalised in May 2015. The landlord’s charges were kept to an absolute minimum.
Mr Owen Martinez acquired a garden apartment in Burton upon Stather in March 2002. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar homes in Burton upon Stather with an extended lease were in the region of £216,000. The average ground rent payable was £60 collected quarterly. The lease lapsed in 2084. Considering the 58 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including legals.
In 2009 we were contacted by Ms C Baker who, having took over the lease of a one bedroom flat in Burton upon Stather in August 2009. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative residencies in Burton upon Stather with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 invoiced quarterly. The lease terminated in 2104. Given that there were 78 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.