Unfortunately that a Burscough residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Burscough property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. The majority of flat owners in Burscough will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Burscough with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Virgin | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Burscough 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 lawyer we work with provide it.
Adam was the the leasehold owner of a 2 bedroom flat in Burscough on the market with a lease of just over 61 years left. Adam informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Adam to exercise his statutory right. Adam obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last year we were approach by Mrs Jennifer Thompson , who bought a garden apartment in Burscough in July 2006. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Identical premises in Burscough with 100 year plus lease were worth £203,200. The mid-range ground rent payable was £65 collected quarterly. The lease finished on 20 February 2087. Taking into account 61 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of legals.
Last Winter we were approach by Ms D Hill , who was assigned a lease of a first floor flat in Burscough in September 2010. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable homes in Burscough with a long lease were valued about £260,000. The average amount of ground rent was £50 billed monthly. The lease expired on 19 July 2098. Considering the 72 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.