Chances are that if you own a flat in Burnley you actually own a long leasehold interest over your property
Leasehold residencies in Burnley with in excess of 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Burnley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Burnley valuers.
Harrison was the the leasehold owner of a 2 bedroom flat in Burnley being marketed with a lease of a little over sixty years unexpired. Harrison on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be due on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert advice and secured satisfactory deal informally and sell the property.
Last Spring we were called by Mr and Mrs. A García , who purchased a one bedroom flat in Burnley in February 2009. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Burnley with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 invoiced per annum. The lease terminated in 2083. Considering the 57 years unexpired we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.
In 2011 we were contacted by Ms Amy Bailey who, having purchased a studio apartment in Burnley in April 2003. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable properties in Burnley with 100 year plus lease were in the region of £245,000. The average ground rent payable was £50 billed yearly. The lease came to a finish on 25 August 2094. Taking into account 68 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.