Unfortunately that a Burnage residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Burnage property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Most leasehold owners in Burnage will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Burnage with in excess of 100 years remaining 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander | |
| TSB |
Lease extensions in Burnage can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor 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 Burnage lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the freeholder of her studio flat in Burnage, Zoe started the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The transaction completed in April 2008. The landlord’s fees were kept to an absolute minimum.
In 2014 we were approached by Dr R García who, having completed a ground floor flat in Burnage in March 1995. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparable flats in Burnage with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 collected annually. The lease lapsed on 5 August 2102. Given that there were 76 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
In 2010 we were e-mailed by Mr and Mrs. G Allen who, having owned a garden apartment in Burnage in August 1996. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable flats in Burnage with an extended lease were in the region of £176,200. The average amount of ground rent was £65 billed per annum. The lease came to a finish in 2082. Having 56 years remaining we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of legals.