When it comes to long leasehold property in Burnley, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Leasehold owners in Burnley with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has less than 80 years remaining, under the current legislation the freeholder can calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a freeholder in Burnley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Burnley valuers.
Noah was the the leasehold proprietor of a conversion flat in Burnley on the market with a lease of a little over sixty years outstanding. Noah on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Noah to exercise his statutory right. Noah obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr Harrison Clark purchased a ground floor flat in Burnley in May 2006. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Burnley with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease ended in 2105. Given that there were 79 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.
In 2012 we were contacted by Mr and Mrs. N Rivera who, having completed a ground floor apartment in Burnley in March 2004. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar properties in Burnley with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 invoiced monthly. The lease concluded on 18 March 2085. Taking into account 59 years left we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.