As the the remaining lease term of a Burnham On Crouch domestic lease lessens so does its value and therefore the value of your property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Burnham On Crouch will qualify for this right; that being said a lawyer will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Burnham On Crouch with more than 100 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Yorkshire 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. |
The conveyancers that we work with undertake Burnham On Crouch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last Christmas Samuel, came dangerously near to the eighty-year mark with the lease on his purpose- built apartment in Burnham On Crouch. In buying his home two decades ago, the length of the lease was of minimal relevance. Fortunately, he realised he would imminently be paying an escalated premium for Extending the lease. Samuel was able to extend his lease just in the nick of time last September. Samuel and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If the lease had dropped lower than 80 years, the price would have increased by at least £900.
In 2011 we were e-mailed by Mr and Mrs. V Lefèvre who, having took over the lease of a ground floor flat in Burnham On Crouch in June 2012. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative homes in Burnham On Crouch with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 collected per annum. The lease lapsed in 2096. Taking into account 71 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
Last month we were called by Mr and Mrs. S James , who bought a garden flat in Burnham On Crouch in October 1998. The question was if we could approximate the premium could be to extend the lease by 90 years. Comparative premises in Burnham On Crouch with a long lease were in the region of £254,200. The average ground rent payable was £60 billed per annum. The lease lapsed on 10 March 2076. Taking into account 51 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 not including expenses.