Main reasons to commence your Burbage lease extension

Why you should start your Burbage lease extension today:

A Burbage lease depreciates with the years remaining on the lease.

As the length of the unexpired term of a Burbage residential lease diminished so does its value and therefore the value of your property. If the residual term has, more than 99 years to run then this decrease may be fractional however there will become a point in time when a lease has less than eighty years remaining 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 as opposed to later. Most flat owners in Burbage will meet the qualifying criteria; nevertheless a conveyancer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

Burbage property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Burbage with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders may not loan monies on a short lease

The propensity since over the last decade has been for banks to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Burbage lease extension solicitors or enfranchisement solicitors

Lease extensions in Burbage can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.

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 a wealth of experience dealing with Burbage lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Burbage Lease Extension Case Summaries:

Jacob, Burbage, Leicestershire,

Jacob was the the leasehold owner of a high value apartment in Burbage on the market with a lease of just over fifty eight years unexpired. Jacob informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. 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 £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.

Burbage case:

Dr E Alexander purchased a basement apartment in Burbage in November 2004. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical homes in Burbage with 100 year plus lease were valued about £233,200. The average ground rent payable was £60 billed per annum. The lease lapsed on 20 June 2087. Considering the 61 years remaining we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.

Burbage case:

Ms C Patel took over the lease of a garden apartment in Burbage in August 1998. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in Burbage with a long lease were in the region of £166,800. The mid-range ground rent payable was £50 invoiced yearly. The lease ran out in 2076. Given that there were 50 years remaining we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus legals.