Unfortunately that a Burscough residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Burscough property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term slips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of 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 The majority of leasehold owners in Burscough will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Burscough with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Burscough can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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 in-depth market knowledge procuring Burscough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ibrahim owned a 2 bedroom apartment in Burscough on the market with a lease of a few days over 61 years remaining. Ibrahim informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2011 we were phoned by Mr and Mrs. B Martin who, having moved into a studio apartment in Burscough in September 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Burscough with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out in 2096. Having 70 years outstanding we calculated the premium to the landlord for the lease extension to be between £10,500 and £12,000 plus costs.
Mrs Y Roberts moved into a studio flat in Burscough in April 2010. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical properties in Burscough with a long lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease terminated on 24 May 2076. Having 50 years outstanding we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including legals.