Why you should commence your Burnham lease extension

Why you should start your Burnham lease extension today:

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

For anyone whose Burnham property is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension.

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

It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies will not finance a property with a short lease

Mortgage lenders have specific criteria when loaning monies secured on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term falls under a certain unexpired lease term. Many Mortgage lenders will not consider property with a remaining below 75 years as acceptable security. In addition to impacting your ability to sell, it is also relevant where you are wanting to remortgage your Burnham property.

Get in touch with one of our Burnham lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Burnham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Burnham valuers.

Burnham Lease Extension Case Summaries:

Muhammad, Burnham, Buckinghamshire

16 months ago Muhammad, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Burnham. Having purchased his property 18 years ago, the lease term was of little interest. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. Muhammad extended the lease at the eleventh hour last September. Muhammad and the freeholder eventually agreed on a premium of £6,000 . If the lease had fallen below 80 years, the price would have become more exhorbitant by at least £1,075.

Burnham case:

Mr Jamie Rogers was assigned a lease of a purpose-built flat in Burnham in April 2004. The question was if we could estimate the premium could be to prolong the lease by 90 years. Similar premises in Burnham with an extended lease were worth £295,000. The average amount of ground rent was £45 invoiced per annum. The lease concluded on 16 August 2100. Considering the 74 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.

Burnham case:

Last Winter we were contacted by Ms Melissa Bertrand , who was assigned a lease of a first floor apartment in Burnham in April 2012. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable homes in Burnham with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 collected every twelve months. The lease ended in 2089. Considering the 63 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of costs.