Why you should start your Burnley lease extension

Main reasons to start your Burnley lease extension today:

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

Burnley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Burnley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Burnley you should see if your lease has between seventy and 90 years left. There are compelling reasons why a Burnley flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay

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

Leasehold properties in Burnley with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Mortgage companies are really clamping down as regards to properties in Burnley with short leases. For instance you might discover that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus limiting the amount of potential purchasers.

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

Lease extensions in Burnley can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Burnley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Burnley Lease Extension Case Summaries:

Daisy, Burnley, Lancashire,

Following lengthy correspondence with the landlord of her basement apartment in Burnley, Daisy commenced the lease extension process as the eighty year mark was rapidly nearing. The lease extension was concluded in April 2010. The freeholder’s charges were kept to an absolute minimum.

Burnley case:

Dr K Johnson owned a studio flat in Burnley in November 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Burnley with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease elapsed on 6 May 2101. Considering the 75 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.

Burnley case:

Last Christmas we were approach by Mr and Mrs. E Torres , who acquired a purpose-built flat in Burnley in March 1998. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Similar residencies in Burnley with 100 year plus lease were valued about £173,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease concluded on 9 January 2081. Given that there were 55 years remaining we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.