It’s a harsh truth that a Little Burstead residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Little Burstead property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. Most flat owners in Little Burstead will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Little Burstead with over one hundred years unexpired on the lease are sometimes referred to as ‘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 buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| TSB |
Irrespective of whether you are a tenant or a freeholder in Little Burstead,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Little Burstead valuers.
Finley was the the leasehold proprietor of a studio flat in Little Burstead on the market with a lease of fraction over 61 years unexpired. Finley on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Finley to exercise his statutory right. Finley procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Last month we were approach by Mrs P Robinson , who purchased a purpose-built apartment in Little Burstead in February 2006. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Similar residencies in Little Burstead with a long lease were valued around £290,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease came to a finish on 16 July 2099. Given that there were 73 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Mr F Phillips owned a studio apartment in Little Burstead in June 2009. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative properties in Little Burstead with a long lease were in the region of £235,600. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish on 17 February 2088. Having 62 years left we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.