Unfortunately that a Burnley residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Burnley property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Burnley will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Burnley with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Burnley can be a difficult process. We recommend you get professional help 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 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.
Following protracted correspondence with the landlord of her leasehold flat in Burnley, Madeleine initiated the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work completed in May 2008. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Dr I Girard who, having was assigned a lease of a ground floor apartment in Burnley in May 2010. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical flats in Burnley with 100 year plus lease were worth £166,400. The average amount of ground rent was £60 invoiced annually. The lease expiry date was on 10 February 2079. Having 54 years remaining we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including fees.
Mr and Mrs. S Gunderson took over the lease of a basement apartment in Burnley in January 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Burnley with an extended lease were in the region of £227,800. The average amount of ground rent was £45 invoiced per annum. The lease terminated on 7 January 2090. Considering the 65 years left we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.