The market value of Burnley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is below than eighty years
Leasehold premises in Burnley with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 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 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.
Subsequent to lengthy discussions with the freeholder of her first floor apartment in Burnley, Alicia initiated the lease extension process as the 80 year mark was fast approaching. The transaction was finalised in March 2012. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were called by Dr H Rivera , who completed a one bedroom apartment in Burnley in November 2009. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Burnley with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced monthly. The lease came to a finish on 14 March 2102. Given that there were 76 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Last Winter we were approach by Mr Hugo Allen , who acquired a studio apartment in Burnley in October 2005. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar residencies in Burnley with 100 year plus lease were worth £176,200. The average ground rent payable was £65 collected per annum. The lease elapsed in 2082. Considering the 56 years as a residual term we estimated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including legals.