Burton upon Stather leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Burton upon Stather will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not be entitled. There are also strict timetables and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you increased control over the value of your Burton upon Stather leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
John was the the leasehold proprietor of a 2 bedroom apartment in Burton upon Stather on the market with a lease of a little over sixty years unexpired. John informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were John to invoke his statutory right. John procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
In 2012 we were phoned by Dr Kian Evans who, having purchased a purpose-built apartment in Burton upon Stather in September 2004. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical premises in Burton upon Stather with an extended lease were in the region of £257,800. The average amount of ground rent was £65 invoiced yearly. The lease expired on 7 April 2090. Given that there were 65 years left we estimated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of legals.
Last Winter we were phoned by Dr Jake Petit , who moved into a newly refurbished apartment in Burton upon Stather in November 1995. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar properties in Burton upon Stather with a long lease were worth £191,400. The mid-range ground rent payable was £55 collected yearly. The lease ran out in 2079. Having 54 years left we estimated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including professional charges.