Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Burnley. Clearly, the period of lease left shortens over time. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Burnley have the right to extend the lease for a further ninety years under statute. Please give due consideration before putting off your Burnley lease extension. Holding off the cost now simply increases the price you will eventually incur to extend your lease
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Burnley can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 a wealth of experience 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.
In the wake of 6 months of lengthy correspondence with the landlord of her garden apartment in Burnley, Sophia commenced the lease extension process as the eighty year threshold was quickly nearing. The legal work completed in August 2006. The freeholder’s costs were negotiated to slightly above 550 pounds.
In 2013 we were e-mailed by Dr L Scott who, having completed a purpose-built flat in Burnley in July 2000. The question was if we could approximate the premium would be to prolong the lease by ninety years. Similar residencies in Burnley with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 collected annually. The lease ran out in 2099. Taking into account 73 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
In 2010 we were contacted by Mr and Mrs. C Lefebvre who, having acquired a newly refurbished apartment in Burnley in May 2006. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar flats in Burnley with an extended lease were valued about £264,000. The average amount of ground rent was £60 billed monthly. The lease ran out in 2079. Taking into account 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 not including legals.