The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Little Burstead have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Do give careful consideration before delaying your Little Burstead lease extension. Putting off the costs today simply increases the price you will eventually have to pay for a lease extension.
Leasehold properties in Little Burstead with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Little Burstead can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 in-depth market knowledge procuring 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.
Eli was the the leasehold owner of a 2 bedroom flat in Little Burstead on the market with a lease of a little over sixty years left. Eli on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Eli to invoke his statutory right. Eli procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Last month we were called by Mr and Mrs. C Garcia , who moved into a recently refurbished flat in Little Burstead in July 1999. The question was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Identical homes in Little Burstead with a long lease were worth £267,600. The mid-range amount of ground rent was £65 collected monthly. The lease terminated on 12 April 2092. Given that there were 67 years as a residual term we approximated the premium to the landlord for the lease extension to be within £14,300 and £16,400 not including legals.
Mr and Mrs. S Vincent took over the lease of a recently refurbished flat in Little Burstead in February 2009. We are asked if we could approximate the price could be for a 90 year lease extension. Similar properties in Little Burstead with 100 year plus lease were valued about £201,200. The mid-range ground rent payable was £55 invoiced yearly. The lease finished in 2081. Taking into account 56 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of legals.