Burnley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Burnley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Burnley you really ought to investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Burnley leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
The conveyancers 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 conveyancing solicitor we work with provide it.
Luke was the the leasehold proprietor of a 2 bedroom flat in Burnley on the market with a lease of just over 59 years remaining. Luke informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Luke to exercise his statutory right. Luke procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. B Bertrand bought a one bedroom apartment in Burnley in August 1995. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparative flats in Burnley with a long lease were in the region of £191,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease terminated in 2083. Given that there were 58 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 plus professional charges.
Mr and Mrs. C Vincent acquired a studio flat in Burnley in November 2009. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar flats in Burnley with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed on 11 August 2094. Considering the 69 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.