The market value of a leasehold property in Burnage depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed ahead of the eighty year threshold. Current legislation entitles Burnage qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Burnage with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Burnage,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Burnage valuers.
William was the the leasehold proprietor of a conversion apartment in Burnage being sold with a lease of a few days over fifty eight years remaining. William informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were William to exercise his statutory right. William procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2010 we were e-mailed by Mr O Clarke who, having completed a one bedroom apartment in Burnage in September 2007. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Identical homes in Burnage with 100 year plus lease were worth £220,400. The average ground rent payable was £45 billed every twelve months. The lease terminated in 2090. Considering the 64 years outstanding we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 plus fees.
Last Winter we were contacted by Dr Seth Rogers , who completed a one bedroom apartment in Burnage in March 1998. The question was if we could approximate the premium would be for a 90 year extension to my lease. Identical flats in Burnage with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease came to a finish in 2101. Taking into account 75 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.