It’s an underpublicised certainty that a Burscough residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Burscough property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term drops under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Burscough will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Santander | |
| Royal Bank of Scotland |
Lease extensions in Burscough can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Burscough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Riley, started to get close to the eighty-year threshold with the lease on his garden apartment in Burscough. In buying his home twenty years previously, the lease term was of no significance. Luckily, he recognised he needed to take action soon on Extending the lease. Riley arranged for a lease extension just in the nick of time in August. Riley and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he had missed the deadline, the amount would have increased by a minimum £1,075.
In 2014 we were called by Dr M Hall who, having was assigned a lease of a studio flat in Burscough in January 1995. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Burscough with 100 year plus lease were valued around £285,000. The average amount of ground rent was £55 billed monthly. The lease came to a finish in 2106. Taking into account 80 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
Last Autumn we were approach by Dr Isabel Morris , who bought a basement flat in Burscough in February 2012. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable homes in Burscough with a long lease were worth £200,800. The mid-range ground rent payable was £65 collected every twelve months. The lease end date was on 21 October 2086. Having 60 years remaining we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 plus professional charges.