Stop! Your Lease Extension in Burnley Could Be FREE

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Many leaseholders in Burnley are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Burnley has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should commence your Burnley lease extension

Main reasons to commence your Burnley lease extension today:

A Burnley lease depreciates with the years remaining on the lease.

Burnley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Burnley tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Burnley you would be well advised to see if your lease has between seventy and 90 years left. There are good reasons why a Burnley flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay

Burnley property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies may not finance a property with a short lease

Almost all mortgage companies require a lengthy amount of time remaining on any leasehold residence before they will contemplate lending on it. Regardless of whether you require a mortgage, you should keep in mind that it is probable that someone wishing to purchase your property in the future might well do, so in the event that they can't get a mortgage, then the value of your property could be adversely impacted. In the last decade most banks and building societies have increased the required minimum lease length that they are willing to lend on

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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.
Leeds Building Society 85 years remaining from the start of the mortgage.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Burnley lease extensions?

The conveyancing solicitors that we work with undertake Burnley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Burnley Lease Extension Case Summaries:

Ali, Burnley, Lancashire

Half a year ago Ali, started to get near to the 80-year mark with the lease on his purpose- built flat in Burnley. In buying his home twenty years previously, the length of the lease was of no relevance. Fortunately, he became aware that he would soon be paying way over the odds for Extending the lease. Ali arranged for a lease extension just under the wire in June. Ali and the freeholder via the management company ultimately settled on an amount of £5,000 . If he not met the deadline, the figure would have gone up by at least £1,125.

Burnley case:

Last June we were approach by Mrs B Richardson , who moved into a recently refurbished flat in Burnley in January 2004. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparable properties in Burnley with a long lease were worth £264,000. The average ground rent payable was £60 invoiced quarterly. The lease came to a finish on 28 September 2079. Taking into account 53 years unexpired we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including expenses.

Burnley case:

Last Christmas we were approach by Mr and Mrs. E Vincent , who owned a studio flat in Burnley in May 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Burnley with a long lease were worth £225,400. The average ground rent payable was £45 invoiced monthly. The lease lapsed in 2090. Considering the 64 years unexpired we estimated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of professional charges.