Top reasons for Burnham On Sea lease extension

Top reasons for lease extension now:

A Burnham On Sea lease depreciates with the years remaining on the lease.

Burnham On Sea leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Burnham On Sea tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Burnham On Sea you really ought to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

Burnham On Sea property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions may not issue a mortgage on a short lease

Lending institutions have specific criteria when loaning funds secured on leasehold homes. Some will simply refrain from lending at all once the residual lease term drops under a certain unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below seventy years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are seeking to remortgage your Burnham On Sea property.

Why use us for your lease extension in Burnham On Sea?

The lawyers that we work with procure Burnham On Sea lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Burnham On Sea Lease Extension Case Summaries:

Melissa, Burnham On Sea, Somerset,

Trailing lengthy negotiations with the freeholder of her leasehold flat in Burnham On Sea, Melissa commenced the lease extension process as the eighty year mark was fast advancing. The transaction completed in May 2009. The freeholder’s fees were negotiated to approximately 500 GBP.

Burnham On Sea case:

In 2010 we were phoned by Mr and Mrs. O Ricardo who, having bought a studio flat in Burnham On Sea in April 2001. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable properties in Burnham On Sea with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 invoiced quarterly. The lease came to a finish on 16 July 2099. Taking into account 73 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.

Burnham On Sea case:

Last Winter we were phoned by Dr V Lambert , who purchased a ground floor apartment in Burnham On Sea in January 2004. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparable flats in Burnham On Sea with an extended lease were in the region of £264,000. The mid-range amount of ground rent was £60 collected monthly. The lease finished on 8 September 2079. Given that there were 53 years left we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus legals.