It’s a harsh certainty that a Burnley residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Burnley property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Burnley will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| TSB | |
| Yorkshire Building Society |
Using our service will provide you enhanced control over the value of your Burnley leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Austin, started to get near to the eighty-year mark with the lease on his basement apartment in Burnley. Having purchased his property 19 years ago, the lease term was of little bearing. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Austin arranged for a lease extension just under the wire in May. Austin and the landlord ultimately settled on sum of £6,000 . If the lease had gone to less than 80 years, the sum would have increased by a minimum £1,100.
Last Christmas we were contacted by Mr C Williams , who owned a one bedroom apartment in Burnley in May 2010. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Burnley with 100 year plus lease were worth £261,600. The average amount of ground rent was £60 billed monthly. The lease expired on 7 November 2078. Having 52 years unexpired we approximated the premium to the landlord to extend the lease to be within £39,000 and £45,000 plus costs.
Last Summer we were contacted by Mr Toby Hernández , who bought a basement apartment in Burnley in September 2009. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical properties in Burnley with an extended lease were valued about £218,000. The average ground rent payable was £45 collected monthly. The lease ended on 14 September 2089. Considering the 63 years left we estimated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of expenses.