Burnage leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be due. Flat owners in Burnage will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Burnage with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 lawyers that we work with handle Burnage 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 lawyer we work with provide it.
Last October Luke, came critically close to the 80-year threshold with the lease on his purpose- built apartment in Burnage. Having purchased his flat 19 years previously, the unexpired term was of minimal interest. by good luck, he noticed he needed to take steps soon on a lease extension. Luke arranged for a lease extension just ahead of time last April. Luke and the freeholder via the managing agents ultimately settled on the final figure of £6,000 . If he not met the deadline, the premium would have gone up by at least £900.
Last month we were e-mailed by Dr Kirsty López , who moved into a one bedroom flat in Burnage in June 2005. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparable premises in Burnage with a long lease were worth £242,600. The mid-range ground rent payable was £45 invoiced yearly. The lease came to a finish in 2092. Considering the 67 years remaining we calculated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus fees.
In 2013 we were phoned by Mrs Isabel Garcia who, having acquired a garden apartment in Burnage in August 2000. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative premises in Burnage with an extended lease were valued around £280,000. The average ground rent payable was £55 billed annually. The lease expiry date was in 2103. Considering the 78 years left we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.