With a residential leasehold property in Little Burstead, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Residents in Little Burstead with a lease nearing 81 years remaining should seriously think of extending it sooner than later. Once a lease has below eighty years left, under the current statute the freeholder can calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Little Burstead can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 Little Burstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the freeholder of her studio flat in Little Burstead, Poppy started the lease extension process as the eighty year mark was swiftly nearing. The lease extension completed in June 2014. The landlord’s fees were kept to an absolute minimum.
Dr I Norbert took over the lease of a basement flat in Little Burstead in January 2009. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparable premises in Little Burstead with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ran out on 20 May 2106. Given that there were 80 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Mr Caleb Lefebvre moved into a garden apartment in Little Burstead in April 1995. The question was if we could approximate the price could be to extend the lease by an additional years. Comparable flats in Little Burstead with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease termination date was in 2095. Given that there were 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.