The market value of Little Burstead leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the unexpired lease term is less than 80 years
Leasehold premises in Little Burstead with over one hundred years unexpired 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 freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Little Burstead,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Little Burstead valuers.
Half a year ago Lucas, came critically near to the 80-year threshold with the lease on his one bedroom apartment in Little Burstead. Having purchased his flat two decades ago, the lease term was of no relevance. Thankfully, it dawned on him that he would soon be paying an escalated premium for a lease extension. Lucas arranged for a lease extension at the eleventh hour last April. Lucas and the landlord eventually agreed on a premium of £6,000 . If the lease had dipped lower than eighty years, the amount would have gone up by a minimum £1,000.
Last Winter we were approach by Ms Megan Martinez , who acquired a newly refurbished apartment in Little Burstead in March 1996. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar residencies in Little Burstead with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected every twelve months. The lease concluded on 8 October 2098. Considering the 73 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Last Christmas we were approach by Dr Eliot Lambert , who owned a ground floor apartment in Little Burstead in September 2006. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable premises in Little Burstead with 100 year plus lease were in the region of £235,600. The mid-range amount of ground rent was £60 collected yearly. The lease ran out in 2087. Given that there were 62 years left we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including professional charges.