Burnham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Burnham tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Burnham you would be well advised to see if your lease has between seventy and ninety years left. There are good reasons why a Burnham leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Burnham can be a difficult process. We recommend you get professional help from a lawyer and valuer 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 dealing with Burnham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Joseph, started to get near to the eighty-year mark with the lease on his basement flat in Burnham. Having purchased his home two decades ago, the unexpired term was of little relevance. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Joseph was able to extend his lease just ahead of time in June. Joseph and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If the lease had fallen to less than 80 years, the price would have increased by at least £975.
In 2013 we were contacted by Dr Kian Vincent who, having moved into a one bedroom apartment in Burnham in March 2002. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Burnham with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed in 2097. Considering the 72 years left we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.
Last year we were approach by Dr U Harris , who took over the lease of a ground floor apartment in Burnham in May 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Similar properties in Burnham with an extended lease were worth £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease expired in 2086. Having 61 years remaining we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of costs.