It’s a harsh truth 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 reduction being disguised by increases in the Burscough property prices.Where your lease has approximately ninety years left, you should start thinking about 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 under eighty years - otherwise a higher premium will be due. Most flat owners in Burscough will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Burscough 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Burscough,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Burscough valuers.
Freddie owned a high value apartment in Burscough on the market with a lease of a little over sixty years remaining. Freddie informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Freddie to exercise his statutory right. Freddie procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were contacted by Mrs A Jones , who was assigned a lease of a basement flat in Burscough in September 2008. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable homes in Burscough with a long lease were valued about £193,400. The mid-range amount of ground rent was £65 billed monthly. The lease ended in 2084. Having 59 years outstanding we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus expenses.
In 2014 we were approached by Dr Jonathan Cook who, having moved into a newly refurbished apartment in Burscough in August 2000. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative properties in Burscough with a long lease were valued around £255,000. The average amount of ground rent was £50 billed per annum. The lease lapsed in 2095. Taking into account 70 years outstanding we calculated the premium to the landlord to extend the lease to be within £10,500 and £12,000 plus costs.