It’s a harsh certainty that a Burnham Market residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Burnham Market property prices.Where your lease has approximately ninety years left, 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 dips below 80 years - otherwise a higher amount will be due. Most leasehold owners in Burnham Market will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| National Westminster Bank |
Using our service will provide you enhanced control over the value of your Burnham Market leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Freddie was the the leasehold proprietor of a conversion flat in Burnham Market on the market with a lease of a few days over 61 years outstanding. Freddie informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last September we were approach by Dr Katie Taylor , who moved into a basement flat in Burnham Market in July 2011. The question was if we could estimate the price would be for a 90 year lease extension. Identical homes in Burnham Market with an extended lease were worth £225,400. The average ground rent payable was £45 collected every twelve months. The lease lapsed on 24 January 2090. Having 64 years outstanding we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus costs.
Last November we were contacted by Dr T Dupont , who took over the lease of a purpose-built apartment in Burnham Market in August 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Burnham Market with a long lease were in the region of £270,000. The average ground rent payable was £55 collected quarterly. The lease terminated on 14 May 2101. Taking into account 75 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.