Burnley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets 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 really ought to investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Burnley leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Burnley can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 procuring Burnley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Adam was the the leasehold proprietor of a 2 bedroom apartment in Burnley being sold with a lease of a few days over 59 years left. Adam informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Adam to invoke his statutory right. Adam procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr Cameron Edwards acquired a basement flat in Burnley in January 2006. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable homes in Burnley with a long lease were in the region of £191,000. The average ground rent payable was £65 invoiced yearly. The lease elapsed on 14 January 2083. Considering the 58 years left we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 not including legals.
In 2011 we were called by Dr Bethan Rodríguez who, having took over the lease of a purpose-built flat in Burnley in July 2009. The question was if we could approximate the premium could be for a 90 year lease extension. Comparable properties in Burnley with 100 year plus lease were valued about £250,000. The mid-range ground rent payable was £50 collected yearly. The lease lapsed on 11 January 2094. Given that there were 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.