Burnt Oak leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Burnt Oak will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Burnt Oak with over 100 years left on the lease are often referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | 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. |
Retaining our service will provide you better control over the value of your Burnt Oak leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her basement flat in Burnt Oak, Bethan commenced the lease extension process as the 80 year deadline was rapidly nearing. The lease extension was finalised in August 2008. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were contacted by Mr and Mrs. H López , who was assigned a lease of a garden apartment in Burnt Oak in September 1997. The question was if we could approximate the premium could be for a 90 year lease extension. Comparative homes in Burnt Oak with 100 year plus lease were worth £243,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease ran out on 20 May 2087. Having 63 years remaining we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus legals.
An example of a Lease Extension case for a Burnt Oak premises is 20 Orchard Court Stonegrove in June 2009. The tribunal decided that a premium of £11,040 should be payable for the new lease This case affected 1 flat. The number of years remaining on the existing lease(s) was 71.55 years.