Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Little Burstead. Inevitably, the term of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Little Burstead have the legal entitlement to extend the lease for an additional ninety years under legislation. Do give due attention before delaying your Little Burstead lease extension. Putting off that expense now only increases the price you will ultimately incur to extend your lease
Leasehold residencies in Little Burstead with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
|Leeds Building Society||85 years remaining from the start of the mortgage.|
|Lloyds TSB Scotland||Minimum 70 years from the date of the mortgage.|
|National Westminster Bank||Mortgage term plus 30 years.|
|Santander|| You must report the unexpired lease term to us and await our instructions if: |
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis
We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Regardless of whether you are a tenant or a freeholder in Little Burstead,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Little Burstead valuers.
Aiden owned a 2 bedroom apartment in Little Burstead on the market with a lease of fraction over fifty eight years remaining. Aiden informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Aiden to invoke his statutory right. Aiden obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2012 we were approached by Mr and Mrs. P Bertrand who, having purchased a recently refurbished apartment in Little Burstead in November 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Little Burstead with an extended lease were worth £285,000. The average amount of ground rent was £45 collected annually. The lease elapsed in 2094. Given that there were 71 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
Last Summer we were e-mailed by Mrs Stephanie Clarke , who completed a one bedroom apartment in Little Burstead in March 1997. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Identical properties in Little Burstead with an extended lease were worth £230,800. The mid-range amount of ground rent was £60 invoiced annually. The lease ended in 2083. Considering the 60 years remaining we approximated the premium to the landlord to extend the lease to be within £24,700 and £28,600 plus expenses.