As the length of the unexpired term of a Burwell domestic lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Most flat owners in Burwell will qualify for this right; that being said a lawyer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| National Westminster Bank | |
| The Mortgage Works |
Engaging our service gives you increased control over the value of your Burwell leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Elijah was the the leasehold owner of a 2 bedroom flat in Burwell on the market with a lease of just over 72 years unexpired. Elijah on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Dr F Anderson completed a one bedroom flat in Burwell in August 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical premises in Burwell with an extended lease were valued around £295,000. The average ground rent payable was £50 collected quarterly. The lease concluded on 7 July 2101. Having 75 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
Last Spring we were phoned by Ms Lily Collins , who moved into a basement flat in Burwell in September 1996. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar premises in Burwell with a long lease were worth £250,400. The mid-range amount of ground rent was £65 billed annually. The lease ended in 2090. Given that there were 64 years unexpired we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of legals.