The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Burford have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Burford lease extension. Shelving that expense today simply increases the amount you will ultimately be required to pay to extend the lease.
Leasehold premises in Burford with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | |
| Santander | |
| Skipton Building Society | |
| TSB | |
| Virgin |
Lease extensions in Burford can be a difficult process. We recommend you get guidance from a conveyancer 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 a wealth of experience procuring Burford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley was the the leasehold owner of a studio apartment in Burford being marketed with a lease of a little over 61 years outstanding. Riley on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Riley to exercise his statutory right. Riley obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Last Autumn we were called by Ms Sophia Ali , who was assigned a lease of a one bedroom apartment in Burford in April 2012. The question was if we could approximate the price would likely be to extend the lease by 90 years. Comparable properties in Burford with 100 year plus lease were worth £257,800. The average amount of ground rent was £65 invoiced per annum. The lease ran out on 25 September 2091. Considering the 65 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus fees.
Dr R Adams moved into a recently refurbished apartment in Burford in November 1996. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in Burford with an extended lease were in the region of £191,400. The average amount of ground rent was £55 collected per annum. The lease finished in 2080. Having 54 years outstanding we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of expenses.