Burnage leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Burnage tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Burnage you really ought to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Burnage with over 100 years left on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Burnage leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Thomas owned a high value apartment in Burnage being marketed with a lease of fraction over 59 years left. Thomas on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Thomas to exercise his statutory right. Thomas obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last year we were phoned by Mr and Mrs. I Ward , who acquired a purpose-built flat in Burnage in September 2012. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Burnage with 100 year plus lease were valued around £168,800. The mid-range amount of ground rent was £60 collected monthly. The lease ran out in 2080. Considering the 55 years as a residual term we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
Dr Emma Morris bought a garden apartment in Burnage in August 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative residencies in Burnage with 100 year plus lease were valued around £235,200. The mid-range ground rent payable was £45 invoiced quarterly. The lease ended on 1 May 2091. Having 66 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.