On the balance of probabilities if you own a flat in Burwash you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Burwash can be a difficult process. We recommend you secure professional help from a lawyer 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 in-depth market knowledge procuring Burwash lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jack, started to get close to the 80-year threshold with the lease on his basement flat in Burwash. In buying his home 19 years previously, the unexpired term was of minimal concern. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Jack extended the lease at the eleventh hour last August. Jack and the freeholder subsequently settled on the final figure of £6,000 . If the lease had dipped to less than eighty years, the premium would have increased by at least £1,150.
Last month we were e-mailed by Mr and Mrs. D Campbell , who owned a recently refurbished flat in Burwash in July 2005. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparable properties in Burwash with a long lease were worth £295,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease elapsed on 24 September 2099. Considering the 74 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Mr and Mrs. H Gómez purchased a one bedroom apartment in Burwash in June 1999. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar homes in Burwash with 100 year plus lease were worth £248,000. The average amount of ground rent was £65 invoiced quarterly. The lease came to a finish on 19 October 2088. Taking into account 63 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of legals.