Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Burwash. Clearly, the period of lease remaining shortens over time. This is often ignored and only becomes a problem when the flat or house needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Burwash have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please give careful consideration before putting off your Burwash lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Burwash can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Burwash lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Archie was the the leasehold owner of a 2 bedroom apartment in Burwash being sold with a lease of a few days over sixty years unexpired. Archie on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Archie to invoke his statutory right. Archie obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Last Autumn we were approach by Dr Ethan Gómez , who completed a basement apartment in Burwash in November 2008. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative homes in Burwash with an extended lease were in the region of £240,600. The average amount of ground rent was £65 billed every twelve months. The lease elapsed in 2087. Given that there were 62 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of expenses.
Mr and Mrs. A Gray moved into a recently refurbished flat in Burwash in October 2001. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparable homes in Burwash with a long lease were valued around £179,200. The mid-range ground rent payable was £55 collected annually. The lease finished on 22 January 2076. Given that there were 51 years outstanding we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus costs.