When it comes to domestic leasehold property in Burnley, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than 80 years left. Residents in Burnley with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has less than 80 years left, under the current statute the landlord can calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Burnley with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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. |
Lease extensions in Burnley can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
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 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.
Aaron owned a studio apartment in Burnley being sold with a lease of fraction over fifty eight years unexpired. Aaron informally approached his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Aaron to invoke his statutory right. Aaron procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Ms Lydia Jackson completed a purpose-built apartment in Burnley in July 1997. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Identical premises in Burnley with 100 year plus lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out in 2087. Having 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of costs.
Dr M Young purchased a one bedroom apartment in Burnley in January 2008. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative homes in Burnley with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease finished in 2098. Considering the 72 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.