Burwell leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Burwell will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain cases you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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. |
| Yorkshire 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. |
Retaining our service gives you increased control over the value of your Burwell leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the landlord of her garden apartment in Burwell, Grace started the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was finalised in June 2009. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were called by Mrs E Michel who, having purchased a basement apartment in Burwell in April 2011. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Burwell with a long lease were valued about £174,200. The mid-range amount of ground rent was £55 billed annually. The lease came to a finish in 2077. Given that there were 51 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including legals.
Last Christmas we were called by Mr and Mrs. C Wood , who acquired a one bedroom flat in Burwell in January 2000. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Burwell with a long lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced monthly. The lease came to a finish in 2097. Given that there were 71 years unexpired we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.