Main reasons to commence your Burnopfield lease extension

Top reasons for lease extension now:

A Burnopfield leasehold property depreciates with the years remaining on the lease.

The market value of Burnopfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than 80 years

Burnopfield property with a lease extension is almost the same value as a freehold

Leasehold properties in Burnopfield with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies may not lend with a short lease

Most high street banks are tightening their criteria and many now want flats to have at least 60 if not 70 years left once the mortgage has expired. Considering a number of flats in Burnopfield were built in the fifties, sixties and seventies this means many now need to be extended if they wish to obtain a mortgage.

What makes us experts in Burnopfield lease extensions?

Regardless of whether you are a tenant or a landlord in Burnopfield,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 Burnopfield valuers.

Burnopfield Lease Extension Case Studies:

Matthew, Burnopfield, County Durham,

Matthew owned a 2 bedroom flat in Burnopfield on the market with a lease of a little over sixty years remaining. Matthew on an informal basis contacted his landlord a well known Bristol-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 £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Matthew to invoke his statutory right. Matthew procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.

Burnopfield case:

Mr and Mrs. K Leroy bought a basement flat in Burnopfield in May 2010. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical premises in Burnopfield with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 collected monthly. The lease finished on 25 November 2097. Given that there were 71 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.

Burnopfield case:

In 2009 we were called by Mr and Mrs. H Davis who, having moved into a purpose-built flat in Burnopfield in April 1998. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical properties in Burnopfield with an extended lease were in the region of £225,800. The average amount of ground rent was £60 billed every twelve months. The lease ran out in 2086. Taking into account 60 years left we approximated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including legals.