As the the remaining lease term of a Little Burstead residential lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. Many flat owners in Little Burstead will qualify for this right; however a conveyancing solicitor can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Little Burstead with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Little Burstead,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Little Burstead valuers.
Last year Jake, came dangerously close to the eighty-year mark with the lease on his studio apartment in Little Burstead. In buying his flat two decades ago, the lease term was of no bearing. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Jake arranged for a lease extension just under the wire last September. Jake and the landlord who owned the flat above subsequently agreed on sum of £6,000 . If the lease had slipped to less than 80 years, the premium would have escalated by a minimum £1,000.
In 2009 we were e-mailed by Mrs W Collins who, having acquired a studio flat in Little Burstead in March 1997. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Little Burstead with an extended lease were worth £205,000. The mid-range ground rent payable was £50 collected quarterly. The lease terminated on 14 June 2104. Considering the 79 years remaining we estimated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 not including professional charges.
In 2012 we were approached by Mr and Mrs. I Bonnet who, having purchased a first floor flat in Little Burstead in March 2007. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Identical flats in Little Burstead with a long lease were worth £275,000. The average ground rent payable was £65 billed every twelve months. The lease finished in 2093. Considering the 68 years left we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.