Top reasons for Burnley lease extension

Why you should commence your Burnley lease extension today:

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

Burnley leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Flat owners in Burnley will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Burnley with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may not grant a mortgage with a short lease

Lending institutions have set criteria when loaning funds charged on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term goes beneath a specified unexpired lease term. Many Mortgage lenders will not consider property with an unexpired term of less than seventy years as adequate security. As well as this being important when selling, it is also relevant if you are seeking to refinance your Burnley property.

What makes us experts in Burnley lease extensions?

The conveyancing solicitors that we work with procure Burnley 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 conveyancer we work with provide it.

Burnley Lease Extension Example Cases:

Alexander, Burnley, Lancashire

Half a year ago Alexander, came precariously near to the 80-year threshold with the lease on his ground floor apartment in Burnley. In buying his home twenty years ago, the lease term was of little interest. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Alexander arranged for a lease extension just under the wire in July. Alexander and the freeholder subsequently agreed on sum of £5,500 . If the lease had dipped to less than 80 years, the figure would have gone up by at least £1,000.

Burnley case:

Ms Phoebe Cox moved into a one bedroom apartment in Burnley in March 2011. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Similar flats in Burnley with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced monthly. The lease terminated in 2097. Having 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.

Burnley case:

In 2009 we were contacted by Dr G Harris who, having was assigned a lease of a one bedroom apartment in Burnley in July 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Burnley with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed annually. The lease ran out on 3 February 2077. Considering the 51 years remaining we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 plus expenses.