Burton upon Trent leases on residential properties are gradually decreasing 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. Legislation has been in place for sometime now allowing qualifying Burton upon Trent residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Burton upon Trent you must see if your lease has between 70 and ninety years remaining. There are good reasons why a Burton upon Trent flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
The conveyancers that we work with handle Burton upon Trent lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her one bedroom flat in Burton upon Trent, Alisha commenced the lease extension process just as her lease was coming close to the critical 80-year mark. The transaction was finalised in January 2010. The landlord’s costs were restricted to under 450 pounds.
Last Summer we were phoned by Dr Teddy Miller , who completed a one bedroom flat in Burton upon Trent in January 2000. The question was if we could approximate the premium could be to prolong the lease by 90 years. Comparable flats in Burton upon Trent with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 billed quarterly. The lease end date was on 16 September 2094. Given that there were 69 years unexpired we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.
In 2009 we were e-mailed by Mr V Jones who, having completed a garden apartment in Burton upon Trent in September 2003. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparable flats in Burton upon Trent with an extended lease were in the region of £216,000. The average ground rent payable was £60 collected every twelve months. The lease ran out on 11 November 2083. Having 58 years remaining we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.