The re-sale value of a leasehold property in Burnham is impacted by how long the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed ahead of the eighty year cut off point. Statute entitles Burnham qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Burnham with more than 100 years unexpired 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers that we work with undertake Burnham 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 lawyer we work with provide it.
After unsuccessful discussions with the freeholder of her two bedroom apartment in Burnham, Amelia initiated the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was finalised in March 2005. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were phoned by Mrs P Jones , who owned a basement apartment in Burnham in August 2010. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar flats in Burnham with a long lease were worth £198,800. The average ground rent payable was £55 collected monthly. The lease terminated on 10 November 2081. Taking into account 55 years outstanding we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of costs.
Last year we were e-mailed by Mr and Mrs. B Wright , who completed a one bedroom apartment in Burnham in April 2010. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable premises in Burnham with an extended lease were valued around £295,000. The average amount of ground rent was £50 collected every twelve months. The lease elapsed on 8 May 2101. Given that there were 75 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.