Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Burscough. Inevitably, the length of lease remaining shortens over time. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Burscough have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful consideration before putting off your Burscough lease extension. Putting off that expense now likely increases the price you will eventually have to pay to extend your lease
Leasehold premises in Burscough with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Burscough,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Burscough valuers.
Subsequent to protracted negotiations with the landlord of her basement apartment in Burscough, Chloe initiated the lease extension process just as her lease was coming close to the critical 80-year mark. The lease extension was finalised in August 2011. The landlord’s costs were negotiated to a tad over 500 pounds.
Last year we were e-mailed by Ms Rhiannon Simon , who acquired a studio flat in Burscough in August 2005. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative residencies in Burscough with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 invoiced monthly. The lease expired in 2104. Taking into account 78 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.
Last Christmas we were called by Dr D Allen , who purchased a studio flat in Burscough in February 2002. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative homes in Burscough with an extended lease were worth £186,000. The average amount of ground rent was £65 billed yearly. The lease finished on 23 October 2084. Having 58 years unexpired we calculated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus expenses.