With a domestic leasehold premises in Burwash, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Residents in Burwash with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has under 80 years left, under the relevant legislation the freeholder can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Burwash,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Burwash valuers.
Two years ago William, came seriously close to the 80-year threshold with the lease on his studio flat in Burwash. In buying his flat two decades ago, the unexpired term was of minimal importance. Luckily, he recognised he would imminently be paying an inflated amount for Extending the lease. William was able to extend his lease just under the wire last March. William and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £1,150.
In 2012 we were e-mailed by Mr and Mrs. D Peterson who, having bought a basement flat in Burwash in November 1995. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical homes in Burwash with an extended lease were worth £230,800. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed on 26 February 2086. Having 60 years unexpired we approximated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including costs.
Last Winter we were contacted by Dr W Nelson , who completed a basement flat in Burwash in November 2008. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Burwash with a long lease were in the region of £166,800. The mid-range ground rent payable was £50 invoiced annually. The lease concluded on 23 March 2076. Given that there were 50 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus fees.