Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Burnham Market. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Burnham Market have the legal entitlement to extend the lease for a further 90 years under legislation. You should give careful consideration before putting off your Burnham Market lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Birmingham Midshires | |
| Skipton Building Society | |
| Yorkshire Building Society |
Using our service gives you enhanced control over the value of your Burnham Market leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jude owned a conversion flat in Burnham Market being sold with a lease of just over fifty eight years unexpired. Jude on an informal basis contacted his landlord a well known Manchester-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 subject to an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Jude to invoke his statutory right. Jude obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2009 we were approached by Mrs Eleanor Baker who, having bought a one bedroom flat in Burnham Market in January 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Burnham Market with 100 year plus lease were valued around £275,000. The average ground rent payable was £55 billed quarterly. The lease concluded in 2102. Given that there were 76 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
Last Spring we were phoned by Mr and Mrs. K Garcia , who completed a purpose-built flat in Burnham Market in February 1995. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Identical residencies in Burnham Market with a long lease were in the region of £176,200. The average ground rent payable was £65 billed annually. The lease expired on 10 November 2082. Taking into account 56 years remaining we approximated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 not including costs.