Burnham leases on residential deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Burnham will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Burnham with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Burnham can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring Burnham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan was the the leasehold owner of a studio apartment in Burnham on the market with a lease of a little over fifty eight years left. Ethan informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ethan to exercise his statutory right. Ethan procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last Christmas we were contacted by Dr Benjamin François , who purchased a studio apartment in Burnham in February 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Burnham with an extended lease were worth £191,400. The average ground rent payable was £55 invoiced quarterly. The lease came to a finish in 2079. Having 54 years remaining we estimated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 plus fees.
In 2013 we were e-mailed by Dr K Bonnet who, having moved into a first floor flat in Burnham in July 2000. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Burnham with a long lease were worth £295,000. The average amount of ground rent was £45 collected monthly. The lease finished in 2099. Considering the 74 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.