The only way is down when it comes to Burnley lease terms. Burnley properties that have a remaining term shorter than 80 years will de-escalate in value at a rapid rate, and the cost to extend your lease will increase.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you increased control over the value of your Burnley leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Stanley owned a high value apartment in Burnley on the market with a lease of just over fifty eight years outstanding. Stanley informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Stanley to invoke his statutory right. Stanley obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2009 we were phoned by Dr W Carter who, having acquired a basement apartment in Burnley in August 2007. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Identical residencies in Burnley with a long lease were valued about £290,000. The mid-range ground rent payable was £60 invoiced monthly. The lease finished on 25 September 2106. Taking into account 80 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
In 2011 we were e-mailed by Mr and Mrs. G Collins who, having bought a one bedroom apartment in Burnley in June 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Burnley with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 collected quarterly. The lease lapsed in 2086. Considering the 60 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including expenses.