The 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 increase materialy once the unexpired lease term is less than 80 years
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Burnley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Burnley valuers.
Subsequent to protracted correspondence with the landlord of her garden apartment in Burnley, Laura commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work was concluded in April 2015. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were e-mailed by Mr R Thomas , who took over the lease of a ground floor flat in Burnley in August 1998. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Comparative properties in Burnley with a long lease were valued about £235,200. The mid-range amount of ground rent was £45 invoiced quarterly. The lease came to a finish on 8 October 2091. Given that there were 66 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
In 2009 we were called by Dr Alexandra Pérez who, having purchased a garden flat in Burnley in November 2002. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Similar residencies in Burnley with a long lease were worth £280,000. The average ground rent payable was £55 collected every twelve months. The lease ran out in 2102. Taking into account 77 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.