Top reasons for Burbage lease extension

Why you should commence your Burbage lease extension today:

Increase your lease and increase your Burbage property value

With a long leasehold property in Burbage, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than 80 years left. Leasehold owners in Burbage with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has fewer than eighty years outstanding, under the current legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Burbage with in excess of 100 years remaining 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to lend on a short lease

Many mortgage companies insist on a lengthy amount of time remaining on any leasehold property before they will consider it as adequate security. Even if you don't require a mortgage, you should keep in mind that it is probable that someone wanting to purchase your property in the future might well do, so in the event that they can't obtain a mortgage, then the financial worth of your property could suffer. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are prepared to lend on

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

The conveyancers that we work with procure Burbage 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 conveyancer we work with provide it.

Burbage Lease Extension Case Studies:

Eleanor, Burbage, Leicestershire,

After unsuccessful discussions with the freeholder of her two bedroom apartment in Burbage, Eleanor commenced the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension was finalised in March 2014. The landlord’s costs were negotiated to about 500 pounds.

Burbage case:

Dr F López took over the lease of a one bedroom flat in Burbage in July 1999. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable homes in Burbage with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 billed per annum. The lease lapsed on 10 May 2106. Taking into account 80 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.

Burbage case:

Last Christmas we were contacted by Mr M Thomas , who purchased a one bedroom flat in Burbage in November 2000. The question was if we could estimate the premium could be for a ninety year lease extension. Comparable homes in Burbage with an extended lease were valued about £275,000. The average amount of ground rent was £45 billed quarterly. The lease lapsed in 2095. Having 69 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.